Street View: Analysts cut Darden's PTs as inflation pressures margins

Darden Restaurants

19/09/2025 15:44

** Olive Garden parent Darden Restaurants DRI.N missed first-quarter profit estimates on Thursday, hurt by higher input costs

** At least 10 analysts cut PT on the stock

VALUE GAINS TRACTION, MARGINS UNDER PRESSURE

** Citigroup ("buy," PT: $239) says the new menu, which repurposes existing products to offer new and affordable options to customers, will likely improve value perception and boost traffic; cuts PT from $249

** Keybanc ("overweight," PT: $225) says the co is likely to face near-term margin pressures from food inflation and smaller portion sizes; cuts PT from $240

** Truist Securities ("buy," PT: $240)says high beef costs have hurt co's margins, which it is trying to offset by raising menu prices a bit

** Truist expects beef prices to fall than rise, which could help boost profit; cuts PT from $252

** Raymond James ("outperform," PT: $210) cites near-term margin pressure from rising commodity costs like beef and shrimp until pricing can "catch up" to inflation; cuts PT from $230

 (Reporting by Anshi Sancheti in Bengaluru)

 ((Anshi.Sancheti@thomsonreuters.com))