Analysts Have Made A Financial Statement On Darden Restaurants, Inc.'s (NYSE:DRI) Full-Year Report

Last week saw the newest yearly earnings release from Darden Restaurants, Inc. (NYSE:DRI), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of US$11b and statutory earnings per share of US$8.51. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Darden Restaurants after the latest results.

See our latest analysis for Darden Restaurants

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Taking into account the latest results, the most recent consensus for Darden Restaurants from 25 analysts is for revenues of US$11.8b in 2025. If met, it would imply a credible 3.8% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 9.9% to US$9.53. In the lead-up to this report, the analysts had been modelling revenues of US$11.8b and earnings per share (EPS) of US$9.56 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$170, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Darden Restaurants, with the most bullish analyst valuing it at US$192 and the most bearish at US$124 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Darden Restaurants' past performance and to peers in the same industry. We would highlight that Darden Restaurants' revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2025 being well below the historical 8.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Darden Restaurants is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Darden Restaurants' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Darden Restaurants going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Darden Restaurants that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com