Restaurant company Darden (NYSE:DRI) will be reporting results tomorrow before market hours. Here's what you need to know.
Last quarter Darden reported revenues of $2.73 billion, up 9.7% year on year, missing analyst expectations by 0.5%. It was a mixed quarter for the company, with same store sales up 2.8% year on year and in line with expectations, but revenue missed. EPS beat, which was a major positive. With regards to guidance, it was mixed just like the quarter's performance. Fiscal 2024 revenue guidance was slightly below while EPS was slightly ahead.
Is Darden buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Darden's revenue to grow 8.6% year on year to $3.03 billion, slowing down from the 13.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.62 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing ten downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.
With Darden being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for restaurants stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 3.2% over the last month. Darden is up 4.8% during the same time, and is heading into the earnings with with analyst price target of $179.6, compared to share price of $173.2.