Darden Restaurants Heading Into 2026 With 'Lack Of Incremental Sales Drivers'

While Darden Restaurants Inc (NYSE:DRI) failed to leverage significant drivers last year, there is a "a lack of incremental sales drivers" in 2026, according to Truist Securities.

The Darden Restaurants Analyst: Analyst Jake Bartlett downgraded the rating from Buy to Hold and cut the price target from $240 to $207.

The Darden Restaurants Thesis: While Olive Garden's same-store sales have historically outperformed peers significantly, especially during periods of economic pressure, the segment's outperformance was limited in 2025, Bartlett said in the downgrade note.

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The subdued outperformance suggests that Olive Garden's everyday value did not resonate with customers, he added.

Darden Restaurants' margin upside is limited due to rising commodity costs and shrinking labor productivity gains, the analyst stated.

He recommended "self-help stories," citing the uncertain demand environment, while ranking Darden Restaurants low on this parameter.

DRI Price Action: Darden Restaurants shares were down 1.01% at $200.45 at the time of publication on Friday, according to Benzinga Pro data.

Darden Restaurants, a major player in the consumer discretionary sector, has demonstrated resilience with a market cap of $23.32 billion and a P/E ratio of 21.23, indicating consistent investor confidence.

The stock’s 52-week range, from $169 to $228.27, shows it is currently closer to its high, reflecting strong demand in the hospitality industry as consumer spending rebounds post-pandemic.

Image created using artificial intelligence via Midjourney.