Darden Restaurants, Inc. (NYSE:DRI) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Shareholders might have noticed that Darden Restaurants, Inc. (NYSE:DRI) filed its second-quarter result this time last week. The early response was not positive, with shares down 2.3% to US$184 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$3.1b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.6% to hit US$2.03 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Darden Restaurants' 29 analysts is for revenues of US$13.2b in 2026. This would reflect a credible 4.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 10% to US$10.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$13.2b and earnings per share (EPS) of US$10.76 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Darden Restaurants

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$221. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Darden Restaurants analyst has a price target of US$261 per share, while the most pessimistic values it at US$160. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Darden Restaurants'historical trends, as the 9.6% annualised revenue growth to the end of 2026 is roughly in line with the 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 10% per year. It's clear that while Darden Restaurants' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$221, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Darden Restaurants going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Darden Restaurants that you need to be mindful of.

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