Darden Restaurants' (DRI) key brands should continue their "solid momentum" and the company's fiscal-year financial outlook should remain mostly intact despite headwinds, UBS Securities said.

Fiscal Q3 same-store sales momentum across the company's core brands should continue despite weather-related impacts and earnings should be largely in line with expectations even amid higher beef prices. UBS models Q3 same-store sales of 3.9% at Olive Garden and 6.0% at LongHorn Steakhouse, for a blended figure of 3.7%, compared with 3.9% estimate.

Olive Garden's momentum should hold due to its value offerings, new menu initiatives, contributions from Uber Direct and marketing investments. Momentum should continue on consistent execution and menu innovation for LongHorn Steakhouse, according to the note Monday.

UBS projects fiscal 2026 blended same-store sales of 3.8%, with Olive Garden at 4.2% and LongHorn at 5.4%.

The brokerage said elevated beef costs could pressure margins in fiscal Q3, though underlying trends should remain solid through fiscal 2026, supported by marketing and menu innovation that could drive long-term total shareholder returns of 10% to 15%.

The company is expected to report fiscal Q3 results on March 19.

UBS has a buy rating on the stock with a $230 price target.

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