Evercore ISI notes Darden Restaurants (DRI) SSS growth guidance

Evercore ISI analyst David Palmer reiterated an Outperform rating and $225.00 price target on Darden Restaurants (NYSE: DRI)

The analyst commented, "First, the company is anticipating accelerating blended SSS growth in F4Q from roughly 4% in F3Q to roughly 6% in F4Q. This guidance is striking since comparisons are 4pp and 5pp tougher on a 1- and 2-year basis. Second, the earnings flow-through has been limited by food costs (e.g., beef) and growth in labor hours. Given the company’s strong recent history on guidance, we expect investor questions (including the 8:30am earnings Q&A) to center on QTD commentary and other plans to drive sales. We expect sales commentary for Olive Garden — which had relatively light SSS in F3Q — will be particularly important for the stock."

For an analyst ratings summary and ratings history on Darden Restaurants click here. For more ratings news on Darden Restaurants click here.

Shares of Darden Restaurants closed at $200.71 yesterday.

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