Darden Restaurants is due for a pause after a recent rally, according to Baird. Analyst David Tarantino downgraded the Olive Garden parent to neutral from outperform, saying the “risk/reward looks more balanced” following the stock’s recent outperformance. Including dividends, the company’s returned 1% to shareholders, while the S & P 500 has lost 16%. Darden shares have rallied more than 16% in the fourth quarter. “We still have a very positive view of the company’s internal operating fundamentals, and believe DRI is on track to deliver good results in FQ2-FQ3, but when factoring in the year-to-date outperformance for the shares and the lingering risks related to the macro outlook, we simply believe the risk/reward on DRI has become more balanced at current valuation metrics,” Tarantino said. While both the company and the broader casual dining industry have held up decently,…
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