Darden Analysts Breakdown Q4 Results: Olive Garden Lags, LongHorn Steakhouse Outperforms

Core Viewpoint - Darden Restaurants reported better-than-expected quarterly earnings, driven by stronger restaurant margins, despite a miss in same-store sales growth primarily at Olive Garden [5][10]. Financial Performance - Darden Restaurants achieved quarterly earnings of $2.65 per share, surpassing the Street's estimate of $2.61 [5]. - The company maintained a positive same-store sales gap compared to industry peers, attributed to conservative pricing strategies [7]. Analyst Ratings and Price Targets - Analyst Sara Senatore maintained a Buy rating and raised the price target from $180 to $185 [3]. - Analyst Andrew Strelzi reiterated a Market Perform rating with a price target of $165 [12]. - Analyst Eric Gonzalez maintained an Overweight rating with a price target of $170 [14]. - Analyst Brian Harbour reaffirmed an Overweight rating and set a price target of $175 [17]. Market Trends and Consumer Behavior - There is a noted softness in same-store sales growth, particularly at Olive Garden, with low-income consumers cutting back on visits year-over-year [6][11]. - LongHorn Steakhouse outperformed the casual dining industry by 480 basis points in sales and 430 basis points in transaction growth [11]. - Management's full-year comps guidance was below consensus, indicating potential challenges in maintaining performance against peers [16]. Strategic Insights - Analysts suggest that Darden's focus on margin expansion and cost control is a counterbalance to slower demand growth [4]. - Marketing opportunities for Olive Garden are highlighted, particularly in enhancing its everyday value proposition [18].