Evercore ISI downgrades Darden, says rising labor costs will hurt restaurant stock

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Jesse Pound@/in/jesse-pound@jesserpound
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A take-out order from a Darden Restaurants Inc. Olive Garden location is arranged for a photograph in Tiskilwa, Illinois, U.S.
Daniel Acker | Bloomberg | Getty Images

The market is underestimating how much rising wages will take a bite out of Darden Restaurant's earnings despite the recovery in dining-in demand, according to investment firm Evercore ISI.