Darden Restaurants (DRI) is likely to reiterate its fiscal 2027 guidance when it reports quarterly results on Sept. 24, consistent with management's approach following Q1 results in each of the past four years, Oppenheimer said in a Tuesday note.

The company expects 2027 adjusted earnings per share of $11.10 to $11.35, versus the Street at $11.27, the firm noted, adding that the cost inflation expectation provides margin upside as beef cost pressures moderate, despite higher diesel prices.

For Q1, Oppenheimer expects EPS of $2.03, below the Street at $2.05, on consolidated same-store sales growth of 2.8% versus consensus of 3.1%, with Olive Garden same-store sales seen up 0.9% versus the Street's 1.8%, while underlying trends are expected to improve through 2027 as comparisons ease.

The brokerage called Darden's non-Olive Garden brands an underappreciated strength and raised 2027 and 2028 EPS estimates to $11.27 and $12.45, respectively, from $11.24 and $12.38.

Oppenheimer maintained its outperform rating on the stock and raised its price target to $245 from $235.

Shares of the company were down 3.4% in Tuesday trading.

Price: 210.66, Change: -7.91, Percent Change: -3.62