Darden Restaurants (DRI) Did Okay Because of the Chicken, Says Jim Cramer

We recently published 10 Stocks on Jim Cramer’s Radar.  Darden Restaurants, Inc. (NYSE:DRI) is one of the stocks on Jim Cramer's radar.

Full-service restaurant firm Darden Restaurants, Inc. (NYSE:DRI)’s shares are flat year to date to make it another struggling restaurant stock in 2025. The stock experienced a notable 7.7% dip in September after the firm’s fiscal first-quarter earnings report. The results saw Darden Restaurants, Inc. (NYSE:DRI)’s $3.04 billion in revenue meet analyst estimates and its $1.97 in adjusted EPS miss $2 in estimates. During the earnings call, CEO Rick Cardenas commented that his company was experiencing a growth in visits from higher-income customers. Darden Restaurants, Inc. (NYSE:DRI)’s second fiscal quarter EPS of $2.08 also missed analyst estimates of $2.10. Following the second quarter earnings, Stephens cut the firm’s share price target to $205 from $215 and kept an Equal Weight rating on the stock. The financial firm explained that the restaurant company was experiencing softness in its well-known Olive Garden restaurants. Later, BTIG reiterated a Buy rating and a $225 share price target for Darden Restaurants, Inc. (NYSE:DRI). In his earlier comments about the firm, Cramer pointed out that the company was benefiting from chicken on its menu. He reiterated the thoughts this time around as well:

“. . .although Darden did okay, because they’re largely chicken. And chicken is in large supply.”

While we acknowledge the potential of DRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.