04:23 PM EDT, 03/22/2024 (MT Newswires) -- Darden Restaurants ( DRI ) reported strong Q3 margin performance amid disappointing same-store sales across brands given weather and lower income customer pressures, UBS Securities said in a note.

UBS analysts, including Dennis Geiger, said updated guidance pointed to an advantaged model and its ability to manage margins despite ongoing top line pressure embedded in Q4 sales targets.

They said the focus now is on improving sales momentum, further market share gains and margin expansion amid pressured industry trends and consumer weakness. UBS has a buy rating on Darden with a price target of $188.

"We believe DRI is positioned for further mkt share gains & margin expansion over time," the analysts said, adding that the stock is still attractive for a quality compounder set to deliver a 10% to 15% total shareholder return.

Price: 165.11, Change: +0.08, Percent Change: +0.05