Mizuho upgraded Darden Restaurants to Outperform from Neutral, raising its price target to $235 from $195. The broker cited stronger same-store sales expectations and improving margin prospects. Analysts forecast casual dining will outperform in 2026, positioning Darden as a beneficiary of both sector tailwinds and company-specific drivers.

The firm raised its fiscal third-quarter same-store sales estimate for Olive Garden to 5%, above the 4.5% consensus, and maintained a 7% estimate for LongHorn Steakhouse. Drivers include easier year-over-year comparisons, delivery growth, and menu innovation. Mizuho also lifted its restaurant-level margin forecasts for fiscal 2026 and 2027, expecting labor and commodity inflation to ease.

Mizuho increased its fiscal 2026 and 2027 earnings per share estimates, citing stepped-up unit growth of over 3%. The new price target is based on a 12.8x enterprise value to calendar 2026 EBITDA multiple, a premium Mizuho says is justified by higher margin visibility and faster expected growth.