BUZZ-Bernstein sees signs of demand rebound for US restaurants in 2025

Bernstein analysts see initial signs of demand recovery for U.S. restaurants in 2025 on stable food-away-from-home trends

Brokerage upgrades Olive Garden-operator Darden Restaurants DRI.N to "outperform" from "market-perform"; raises PT to $215 from $180

Says DRI will benefit from improved demand among middle-income groups and partnership with food delivery arm of Uber Technologies UBER.N

Adds that heightened promotional environment for the sector will continue in H1, but ease off in H2

Bernstein notes Chipotle Mexican Grill CMG.N and Starbucks SBUX.O less exposed to risks from a potential higher adoption of weight-loss drugs

Chinese tariff-related policies may shake profitability for the sector, but effects are likely to materialize only beyond 2026 - Bernstein analyst Danilo Gargiulo

Downgrades Yum Brands YUM.N to "market-perform" from "outperform", citing intense value wars to pressure KFC and Pizza Hut restaurants

For McDonald's MCD.N, brokerage believes aggressive value orientation will continue to attract traffic and fuel recovery in U.S.

DRI, YUM stock rose 22.4% and 2.7% in 2024, respectively, while MCD fell 2.2%

(Reporting by Aamir Sohail in Bengaluru)

((Aamir.Sohail@thomsonreuters.com;))