Darden Presents 'Attractive Entry Point' For Investors With Less Negative Macro Outlook, Says Analyst

• Raymond James analyst Brian M.Vaccaro reiterated an Outperform rating on the shares of Darden Restaurants Inc (NYSE: DRI) with a price target of $136.00.

• The analyst expects in-line 1Q23 sales and EPS results.

• While broader recession and rate concerns have re-intensified after last week’s inflation and FedEx Corp (NYSE: FDX) headlines, demand for U.S. restaurants remains resilient, said Vaccaro.

• He added that lower gas prices, still solid labor market and wage growth conditions, and the buffer of excess savings for middle/upper-income consumers seem to be supportive.

• Also Read: Why 40% Of Monthly U.S. Food Budgets Are Spent On Restaurants: Report

• Vaccaro thinks the company’s shares trade at the lower end of the stock’s historical valuation range with an attractive dividend (nearly 4%), continuing to present an attractive entry point for investors with a less negative macro outlook.

• He also is of the opinion that Darden is a high-quality, full-service restaurant company characterized by a portfolio of high AUV/margin brands, a best-in-class management team, scale, and systems, and a strong cash flow profile.

• Price Action: DRI shares are trading higher by 1.55% at $131.69 on the last check Monday.

• Photo Via Wikimedia Commons

Latest Ratings for DRI

Date	Firm	Action	From	To
Dec 2021	Stifel	Upgrades	Hold	Buy
Dec 2021	Stephens & Co.	Maintains		Overweight
Dec 2021	MKM Partners	Maintains		Buy

View More Analyst Ratings for DRI

View the Latest Analyst Ratings

See more from Benzinga

• VOXX Launches New E-Commerce Platform

• Bunge Divests Oilseed Processing Business In Russia

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.