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Based in Orlando, Florida, Darden Restaurants, Inc. (DRI) is a prominent player in the restaurant industry, operating a variety of well-known dining brands. With a market cap of $17.52 billion, Darden is recognized for its diverse portfolio, which includes Olive Garden, LongHorn Steakhouse, and several other popular dining establishments. The company is scheduled to announce its fiscal Q1 earnings results after the market closes on Thursday, Sep. 19.
Ahead of the event, analysts expect DRI to report a profit of $1.84 per share, up 3.4% from $1.78 per share in the year-ago quarter. In the last four quarters, the company has surpassed Wall Street’s bottom-line estimates in three and missed on another occasion.
Darden Restaurants' adjusted earnings of $2.65 per share for the last quarter surpassed the consensus estimate by 1.2%. Effective cost management contributed to the company's positive earnings surprise.
For fiscal 2025, analysts expect DRI to report EPS of $9.48, up 6.8% from $8.88 in fiscal 2024.
DRI stock is down 9.8% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 14% gains and the AdvisorShares Restaurant ETF’s (EATZ) 6.7% returns over the same time frame.
On Jul. 17, DRI announced its acquisition of Chuy's Holdings Inc. (CHUY) for approximately $605 million. Pending shareholder approval, the deal is expected to close later this year.
DRI reported Q4 earnings on Jun. 20. Revenue for the period was $2.96 billion, missing analysts' forecasts of $2.98 million. The company expects full-year revenue in the range of $11.8 billion to $11.9 billion. The stock gained 1.5% on the day of the earnings release.
The consensus opinion on DRI stock is optimistic, with an overall “Moderate Buy” rating. Out of 25 analysts covering the stock, 15 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, seven recommend a “Hold,” and one advises “Moderate Sell.” DRI's average analyst price target is $170.92, indicating a potential upside of 15.4% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
