Darden Restaurants, Inc. (NYSE:DRI) shareholders are probably feeling a little disappointed, since its shares fell 4.0% to US$165 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of US$3.0b and statutory earnings per share of US$2.60. 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.

View our latest analysis for Darden Restaurants

Taking into account the latest results, the most recent consensus for Darden Restaurants from 25 analysts is for revenues of US$12.0b in 2025. If met, it would imply a modest 7.2% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 10% to US$9.58. Before this earnings report, the analysts had been forecasting revenues of US$12.2b and earnings per share (EPS) of US$9.68 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$177, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Darden Restaurants at US$194 per share, while the most bearish prices it at US$146. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Darden Restaurants' revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2025 being well below the historical 7.4% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Darden Restaurants is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$177, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Darden Restaurants. Long-term earnings power is much more important than next year's profits. We have forecasts for Darden Restaurants going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Darden Restaurants that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.