NEW YORK (TheStreet) -- Darden Restaurants (DRI) shares are up 1.56% to $55.16 in early market trading on Tuesday after the restaurant chain parent company's rating was raised to "buy" from "hold" by analysts at KeyBanc today.
The firm believes that Olive Garden's new menu revamp will help reverse the decline in sales the restaurant chain has suffered and will help put the company back on track within the next 12 months.
"We do not believe a national restaurant chain that serves 5K guests/store/week is 'broken' but was poorly managed by the previous CEO and COO," said analysts at the firm.
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TheStreet Ratings team rates DARDEN RESTAURANTS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DARDEN RESTAURANTS INC (DRI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins."