Darden Restaurants' (DRI) fiscal Q4 results and conference call highlighted a combination of persistent trends and inflection points, BofA Securities said in a research note.

Persistence was seen in the form of continued robust performance of the steakhouse category and protein more generally, as elevated grocery store beef prices also raise the relative value provided by steakhouse restaurants, according to the Saturday note.

BofA further said that elevated beef prices are unlikely to fall in the near term due to an already tight beef supply that could shrink further with the return of the New World screwworm.

The investment firm said Darden CEO Rick Cardenas noted that the company's casual dining brands saw year-over-year increases in visits from all income groups, including the bottom quintile. The brokerage added that the apparent turning point in demand among low-income households may be due to a similar inflection in that cohort's wage growth, as measured by Bank of America Institute data.

BofA lowered its price target on Darden Restaurants to $274 from $276 and reiterated its buy rating.

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