#3 - Darden Restaurants (NYSE:DRI)
Darden Restaurants Inc. (NYSE: DRI) is not a pure play on the fast-casual trend. Brands such as The Capital Grille and Ruth’s Chris Steakhouse fall under the company’s umbrella. However, the company is also home to the Olive Garden, LongHorn Steakhouse, and Bahama Breeze brands, among others. That makes it worth considering as one of the restaurant stocks to buy.
In a strong economy, this diversity works to the company’s strengths. However, with the challenges that currently exist in the economy, the picture is more mixed. For example, same-store sales at Olive Garden were down slightly year-over-year in 2023. However, LongHorn Steakhouse showed mid-single-digit growth.
The key takeaway for investors is that Darden continues to beat on the top and bottom lines on a year-over-year basis despite tough comparisons to 2023. And the Darden Restaurants analyst forecasts on MarketBeat project 9.8% earnings growth in the next 12 months which supports a Moderate Buy rating on DRI stock.
About Darden Restaurants
Darden Restaurants, Inc, together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood, and Capital Burger brand names.
Read More - Current Price
- $164.56
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 16 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $180.13 (9.5% Upside)
