{
  "id": 10459765,
  "title": "Bernstein reiterates Darden stock rating on improving sales trends",
  "url": "https://urgent.news/2026/09/28/bernstein-reiterates-darden-stock-rating-on-improving-sales-trends",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-28T14:12:42.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/bernstein-reiterates-darden-stock-rating-on-improving-sales-trends-93CH-4920670"
  },
  "original_language": "en",
  "account": "Bernstein SocGen Group has reaffirmed an Outperform rating and $230 price target for Darden Restaurants (NYSE:DRI), citing improving sales trends in the company's first-quarter results. The restaurant chain's sales grew by 5.1%, and adjusted earnings per share rose by 4.1%. EBITDA margin for restaurants remained steady at 18.8%. Darden has maintained its fiscal 2027 earnings per share guidance between $11.10 and $11.35. With a market cap of $22.69 billion and a P/E ratio of 19.35, the stock appears overvalued according to InvestingPro's Fair Value analysis. The company has a 3.24% dividend yield and has raised its dividend for six consecutive years. Darden's Olive Garden brand showed a 1.0% increase in comparable-store sales, while traffic declined by 2.3%. Challenges such as the World Cup and concerns over lettuce contributed to a 150 to 200 basis point reduction in guest counts. Meanwhile, LongHorn Steakhouse recorded a 6.8% same-store sales growth, and Fine Dining posted 1.0% comparable sales growth. Yard House became the third brand to surpass $1 billion in sales. Bernstein expects Olive Garden's sales and traffic to continue accelerating into September, raising its same-store sales growth expectations to 3.2% for the second quarter and 3.5% for the third quarter. Darden reported fiscal 2027 EPS of $2.05, meeting analyst estimates, with sales increasing by 5.1% and adjusted EPS growing by 4.1%. Analyst reactions to the results were mixed, with BMO lowering its price target to $220 and maintaining a Market Perform rating, while JPMorgan maintained an Overweight rating with a $225 price target. KeyBanc kept an Overweight rating with a $237 target despite LongHorn Steakhouse's same-store sales falling short of expectations. Bernstein SocGen Group's Outperform rating and $230 price target highlight the company's positive momentum, and Mizuho raised its price target to $245, citing a positive growth outlook despite challenges at Olive Garden.",
  "summary": null,
  "key_points": [
    "Bernstein reaffirms Outperform rating and $230 price target for Darden",
    "Darden's sales grew 5.1% and adjusted EPS rose 4.1% in Q1",
    "Olive Garden's comparable-store sales increased 1.0%"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}