Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive adopts technology enthusiastically, utilizing decades of expertise and experience among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Group 1 - The article does not provide any specific insights or analysis regarding companies or industries [1]

ORLANDO, Fla., May 22, 2025 /PRNewswire/ -- Darden Restaurants, Inc., (NYSE: DRI) plans to release its fiscal 2025 fourth quarter financial results before the market opens on Friday, June 20, 2025, with a conference call to follow at 8:30 am ET. Rick Cardenas, CEO, and other senior management will discuss fourth quarter results and conduct a question and answer session. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. What:                    Darden Re ...

Group 1 - Darden Restaurants (NYSE: DRI) stock has reached the analyst's price target after a prolonged period of monitoring [1] - The analyst specializes in restaurant stocks, covering various segments including QSR, fast casual, casual dining, fine dining, and family dining [2] - The company employs advanced analytical models and specialized valuation techniques to provide insights and strategies for investors [2] Group 2 - The analyst has no current stock or derivative positions in any mentioned companies and has no plans to initiate any within the next 72 hours [3] - The article expresses the analyst's own opinions and is not influenced by compensation from any company [3]

Core Viewpoint - Brinker International, Inc. (EAT) and Darden Restaurants, Inc. (DRI) are both major players in the casual dining sector, with Brinker showing stronger growth potential and market performance compared to Darden in the current volatile environment [1][16]. Brinker International, Inc. (EAT) - EAT has successfully driven traffic and revenue through various sales-building initiatives, including menu streamlining and food presentation improvements [1]. - In Q2 of fiscal 2025, Brinker reported a 31.4% increase in sales at Chili's and a 19.9% rise in traffic year-over-year, attributed to effective marketing campaigns [2]. - The company opened nine new Chili's restaurants in fiscal 2024 and plans to open 9-11 domestic and 21-25 international locations in fiscal 2025 [3]. - Menu innovation continues to be a focus, with the introduction of new items like Honey Chipotle Mozz Sticks, contributing to a significant increase in sales from the Triple Dipper campaign, which accounted for 14% of total sales in Q2 [4][5]. - The Zacks Consensus Estimate for Brinker's fiscal 2025 sales and EPS indicates year-over-year growth of 18.7% and 102.4%, respectively, with recent upward revisions in earnings estimates [9]. - Brinker's stock has surged 185.2% over the past year, outperforming the industry and the S&P 500 [11]. Darden Restaurants, Inc. (DRI) - Darden benefits from the strong performance of Cheddar's Scratch Kitchen, enhancing its brand portfolio and scale [6]. - The partnership with Uber for on-demand delivery at Cheddar's Scratch Kitchen is currently being piloted at 10 locations, improving customer service [7]. - Darden plans to open 50-55 new restaurants in fiscal 2025 and 60-65 in fiscal 2026, with LongHorn Steakhouse reporting a 5.1% sales increase year-over-year to $768.1 million in Q3 fiscal 2025 [8]. - The Zacks Consensus Estimate for Darden's fiscal 2025 sales and EPS suggests year-over-year increases of 6% and 7%, but earnings estimates have seen slight downward revisions [10]. - DRI's stock has increased by 19.4% over the past year [11]. Comparison and Conclusion - EAT is trading at a forward P/E ratio of 15.00X, above its two-year median of 12.23X, while DRI's forward P/E is at 17.89X, close to its median of 17.21X [14]. - Brinker is viewed as the more attractive investment option due to its strong marketing, menu innovation, and expansion efforts, leading to improved earnings outlook and investor confidence [16][17]. - Darden remains a solid operator but shows softer growth estimates, leading to a more cautious analyst outlook [17].

Group 1: Rithm Capital - Rithm Capital (RITM) is a global asset manager focusing on real estate, credit, and financial services, operating as a real estate investment trust (REIT) for tax purposes [3][4] - The company announced a dividend of $0.25 per share for Q1, with total dividends paid since inception amounting to approximately $5.8 billion, resulting in a dividend yield of about 8.9% [4] - RBC Capital analyst Kenneth Lee reiterated a buy rating on RITM with a price target of $13, noting the company's shift towards an alternative investment manager model [5][6] - Management is considering restructuring to a C-corp structure and evaluating a potential spin-off of Newrez, which would allow RITM to reallocate capital into other investment areas [7] Group 2: Darden Restaurants - Darden Restaurants (DRI), owner of Olive Garden and LongHorn Steakhouse, reported better-than-expected earnings for Q3 FY25 but missed revenue expectations due to adverse weather [9] - The company declared a quarterly dividend of $1.40 per share, with a dividend yield of 2.8% [9] - JPMorgan analyst John Ivankoe reaffirmed a buy rating on DRI, raising the price target to $218 from $186, and highlighted strong comparable sales trends for Q4 FY25 [10][11] - Darden's operating margin is expected to expand from 12.1% in FY25 to 12.3% in FY28, supported by promotional strategies and the rollout of Uber Direct at qualifying locations [12] Group 3: Enterprise Products Partners - Enterprise Products Partners L.P. (EPD) is a midstream energy services provider that paid a cash distribution of $0.535 per unit for Q4 2024, reflecting a 3.9% year-over-year increase [14] - EPD stock offers a yield of 6.4% and has achieved 26 consecutive years of distribution growth, with a distributable cash flow coverage of 1.7 times the declared distributions [15] - RBC Capital analyst Elvira Scotto reiterated a buy rating on EPD with a price target of $37, citing a project backlog increase to $7.6 billion, primarily in Permian gathering and processing [16][17] - Scotto expressed optimism about EPD's consistent cash flows and solid balance sheet, which will support planned growth expenditures and additional opportunities [18]

Financial Performance - Total sales increased by 6.2% to $3.16 billion for the third quarter of fiscal 2025, and by 4.4% to $8.81 billion for the first nine months compared to the same periods in fiscal 2024[107]. - Net earnings from continuing operations were $323.7 million for the third quarter and $747.0 million for the first nine months of fiscal 2025, compared to $313.4 million and $720.5 million for the same periods in fiscal 2024[107]. - Operating income for the third quarter was $418.2 million, an increase of 8.0% compared to $387.4 million in the same quarter of fiscal 2024[101]. - For the three months ended February 23, 2025, operating income was 13.2% of sales, compared to 13.0% for the same period in 2024[117]. - Losses from discontinued operations for the first nine months of fiscal 2025 were $1.2 million, compared to $1.0 million for the same period in 2024[121]. Sales and Growth - The company expects fiscal 2025 sales to be approximately $12.1 billion, with same-restaurant sales growth of about 1.5% and 50 to 55 new restaurant openings[108]. - Olive Garden's sales increased by 1.5% to $1.33 billion for the third quarter, driven by a 4.6% increase in average check[111]. - LongHorn Steakhouse's sales increased by 5.1% to $768.1 million for the third quarter, supported by a 3.3% increase in average check[112]. - The total number of company-owned restaurants increased to 2,165 as of February 23, 2025, up from 2,031 at the end of fiscal 2024[102]. Expenses and Costs - Marketing expenses rose by 11.7% to $35.4 million for the third quarter, reflecting increased investment in brand promotion[101]. - Food and beverage costs decreased as a percentage of sales by 0.9% due to pricing leverage and 0.2% from cost savings, partially offset by a 0.3% impact from menu mix[118]. - Restaurant labor costs remained flat as a percentage of sales, with a 0.9% impact from pricing leverage and a 0.3% impact from productivity improvements, offset by a 1.1% impact from inflation[118]. - General and administrative expenses increased as a percentage of sales primarily due to transaction and integration costs related to the Chuy's acquisition[118]. Tax and Financial Ratios - The effective tax rate increased to 13.1% for the third quarter of fiscal 2025, compared to 10.7% for the same quarter of fiscal 2024[101]. - The effective income tax rate for continuing operations increased to 13.1% for the quarter ended February 23, 2025, compared to 10.7% for the same quarter in 2024[120]. - Segment profit margin for Olive Garden increased by 50 basis points to 23.0% for the three months ended February 23, 2025, driven by lower food and beverage and labor costs[123]. Financing and Investments - The acquisition of Chuy's Holdings was completed for a total consideration of $649.1 million, financed through the issuance of $400 million and $350 million senior notes[105]. - The company entered into a $1.25 billion Revolving Credit Agreement on October 23, 2023, with no outstanding balances as of February 23, 2025[129]. - The company issued $400 million of 4.350% Senior Notes due 2027 and $350 million of 4.550% Senior Notes due 2029 on October 3, 2024, to finance the acquisition of Chuy's[135]. - Capital expenditures rose to $472.6 million for the first nine months of fiscal 2025, compared to $460.8 million in the same period of fiscal 2024, reflecting increased spending on new restaurant construction and remodels[142]. Cash Flow and Liquidity - Net cash flows from operating activities increased to $1.25 billion for the first nine months of fiscal 2025, up from $1.20 billion in the same period of fiscal 2024, driven by higher net earnings of $747.0 million compared to $720.5 million[140]. - Net cash flows used in investing activities were $1.10 billion for the first nine months of fiscal 2025, a decrease from $1.18 billion in the same period of fiscal 2024, with significant acquisitions including $500.0 million for Chuy's[141]. - Net cash flows used in financing activities were $123.9 million for the first nine months of fiscal 2025, down from $158.5 million in the same period of fiscal 2024, including $750.0 million from long-term debt issuance[143]. - Current assets totaled $880.6 million as of February 23, 2025, an increase from $822.8 million as of May 26, 2024, primarily due to higher inventories and cash[147]. - Current liabilities increased to $2.28 billion as of February 23, 2025, compared to $2.19 billion as of May 26, 2024, driven by higher unearned revenues from gift card sales[148]. Shareholder Returns and Future Outlook - The company authorized a new share repurchase program of up to $1 billion, with 2.4 million shares repurchased in the first nine months of fiscal 2025[145]. - The company targets an investment-grade bond rating to maintain flexible access to financing at reasonable costs[128]. - The company plans to continue expanding its restaurant locations and capital expenditures in fiscal 2025, with a focus on managing cost pressures and competition in the restaurant industry[151]. - The company is not aware of any trends that would materially affect its capital requirements or liquidity, indicating confidence in its internal cash-generating capabilities[144].

Group 1: Stock Performance and Market Sentiment - Stocks trading at or near their 52-week highs can indicate bullish momentum, attracting investors who perceive this as a positive sign [1] - The psychological aspect of buying stocks at 52-week highs often leads to increased bidding, further driving prices up [1] - Understanding the reasons behind a stock's price movement is crucial, as stocks may rise due to factors unrelated to their underlying business, such as short squeezes [2] Group 2: Fiserv Inc. (FI) - Fiserv Inc. is a fintech company recognized for its innovation and has been listed among Fortune's "World's Most Admired Companies" for 10 of the last 11 years [4] - The stock reached its 52-week high in early March 2025, driven by news of an expected acquisition of CCV, which will enhance Fiserv's Clover platform deployment in Europe [5] - Following the acquisition news, there was a trend of profit-taking among investors, with a consensus price target of $242.32 indicating potential for further gains [7] Group 3: Darden Restaurants International (DRI) - Darden Restaurants is outperforming many consumer discretionary stocks and is trading at its 52-week high as of March 27, 2025 [8] - The company's recent earnings report showed year-over-year gains in revenue and earnings, prompting analysts to raise price targets significantly [9] - DRI stock has increased by 25% over the last 12 months and 11.8% in 2025, with a forward P/E ratio around 22x, indicating it is not overvalued despite its growth [10] Group 4: Kinross Gold Corp. (KGC) - Kinross Gold is trading at an all-time high as of March 27, 2025, in line with rising gold prices amid market volatility [11] - The stock's upward trend is supported by expectations of higher inflation due to trade tensions and concerns over U.S. debt management [12] - The upcoming earnings report in early May could serve as a catalyst for further price increases, with current consensus price targets being 6.6% lower than the stock's closing price of $12.46 [13]

分组1 - Darden Restaurants reported quarterly earnings of $2.80 per share, slightly below the Zacks Consensus Estimate of $2.81, with sales of $3.16 billion, a 6.2% year-over-year increase, but also below analysts' expectations [6][8] - The company's flagship restaurant, Olive Garden, saw revenues increase by 1.5% year-over-year to $1.33 billion, indicating that consumer sentiment changes are not significantly affecting dining out spending [8][9] - Darden's management provided optimistic guidance, forecasting same-store sales growth of 3% and a profit of $2.93 per share for the current quarter, reflecting a 10.6% increase compared to the same quarter last year [9][12] 分组2 - Darden operates over 2,100 locations across the United States and Canada, with a portfolio that includes casual dining chains like Olive Garden and LongHorn Steakhouse, as well as fine dining establishments [7] - The company has a partnership with Uber for Olive Garden and is piloting a new program for Cheddar's Scratch Kitchen locations, which could enhance delivery services [10] - Market participants are optimistic about Darden's future performance, as evidenced by the stock reaching an all-time high despite mixed earnings results [10][12]

Core Insights - Darden Restaurants, Inc. (DRI) reported third-quarter fiscal 2025 results with earnings and revenues missing the Zacks Consensus Estimate, although both metrics increased year-over-year [1][2] Financial Performance - Adjusted earnings per share (EPS) for the fiscal third quarter were $2.80, slightly below the consensus estimate of $2.81, compared to $2.62 in the prior-year quarter [2] - Total sales for the quarter were $3.15 billion, missing the consensus mark of $3.2 billion, but reflecting a 6.2% increase from the prior-year quarter [3] - Same-restaurant sales increased by 0.7%, supported by contributions from 103 Chuy's restaurants and 40 net new restaurants [3] Segment Sales - Olive Garden sales rose 1.5% year-over-year to $1.33 billion, below the estimate of $1.38 billion, with comparable sales increasing by 0.6% [4] - LongHorn Steakhouse sales increased 5.1% year-over-year to $768.1 million, missing the estimate of $781.6 million, with comparable sales rising by 2.6% [5] - Fine Dining segment sales grew 3.3% year-over-year to $385.3 million, below the estimate of $394.1 million, with comparable sales declining by 0.8% [5] - Other Business sales surged 20.2% year-over-year to $674.3 million, exceeding the estimate of $617.9 million, although comparable sales fell by 0.4% [6] Operating Costs - Total operating costs and expenses increased by 5.9% year-over-year to $2.74 billion, primarily due to higher restaurant expenses, labor costs, and marketing expenses, compared to the projection of $2.77 billion [7] Balance Sheet - As of February 23, 2025, cash and cash equivalents were $224.2 million, up from $194.8 million as of May 26 [8] - Inventories stood at $324.6 million, compared to $318 million in the previous quarter, while long-term debt increased to $2.12 billion from $1.37 billion [8] Share Repurchase - During the fiscal third quarter, Darden repurchased approximately 0.3 million shares of its common stock for about $53 million, with approximately $548 million remaining under the $1 billion repurchase authorization [9] Fiscal 2025 Outlook - For fiscal 2025, Darden expects total sales to be around $12.1 billion, with same-restaurant sales growth anticipated at 1.5% year-over-year [11] - Adjusted diluted EPS from continuing operations is projected to be in the range of $9.45-$9.52, with plans to open 50-55 net new restaurants and total capital spending of approximately $650 million [11]