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]

Group 1 - The company maintains a hold rating on Darden Restaurants, Inc. (NYSE: DRI) after a profitable long trade [1] - The current position is referred to as a house position at BAD BEAT Investing, indicating confidence in the investment [1] - The company has identified high-conviction picks that have performed well during the recent market selloff [1] Group 2 - The company emphasizes a blended trading and income approach to enhance savings and retirement timelines [1] - There is a promotional offer providing a 20% discount on the service [1]

Shares of Darden Restaurants, Inc. (NYSE: DRI ) surged over 6% on Thursday, even as the company delivered mixed quarterly results . Given increased pessimism about the economy and discretionary spending, DRI results were notOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Dis ...

Financial Data and Key Metrics Changes - The company generated $3.2 billion in total sales, a 6% increase from the previous year, driven by same restaurant sales growth of 0.7% and the acquisition of 103 Chuy's restaurants [30] - Adjusted diluted net earnings per share from continuing operations were $2.80, a 6.9% increase from last year [31] - Adjusted EBITDA was $559 million, with an adjusted effective tax rate of 13.4% [33][34] Business Line Data and Key Metrics Changes - Olive Garden's total sales increased by 1.5%, with same restaurant sales growth of 0.6% [35] - LongHorn's total sales rose by 5.1%, driven by same restaurant sales growth of 2.6% and the addition of 14 new restaurants [36] - The fine dining segment saw total sales increase by 3.3%, although same restaurant sales were negative 0.8% for the quarter [37] Market Data and Key Metrics Changes - The average same restaurant sales for the industry grew by 0.9%, while guest counts decreased by 1.2% [6] - The median same restaurant sales for the industry decreased by 2.3%, indicating a significant disparity between average and median results [7] Company Strategy and Development Direction - The company plans to open between 60 and 65 new restaurants in fiscal 2026, with capital expenditures of $375 million to $400 million for new restaurants [41] - The company is testing smaller restaurant prototypes that are approximately 20% smaller and cost about 15% less to build than legacy prototypes [21][22] - The integration of Chuy's is underway, with a focus on improving efficiency through a streamlined human resources platform [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted that same restaurant sales were positively impacted by the launch of fan favorites at Olive Garden, outperforming industry benchmarks [35] - The company expects total sales for the fourth quarter to be between $3.23 billion and $3.26 billion, with same restaurant sales growth above 3% [40] - Management expressed confidence in the strength of their business model and the ability to navigate challenges posed by weather and consumer sentiment [120] Other Important Information - The company returned $217 million to shareholders through dividends and share repurchases [31] - Marketing expenses increased by 10 basis points, consistent with the company's plan [32] Q&A Session Summary Question: Can you speak to whether the improvement is more related to your own brands or the industry? - Management indicated that Olive Garden and LongHorn have continued to perform well, with overall positive trends despite weather impacts [45] Question: What degree do you think there was a flu impact in the quarter? - Management noted that they do not track flu impacts specifically but emphasized that weather had a more significant effect [53] Question: Can you provide insights on the Uber partnership and its impact on advertising spend? - Management stated that Uber is funding part of the advertising spend, but the overall impact on advertising for the quarter is not expected to be significant [60] Question: Can you elaborate on the EPS guidance for the fourth quarter? - Management acknowledged that inflation is expected to rise in Q4, which may impact operating margins [69] Question: What is driving Olive Garden's recent sales momentum? - Management attributed the sales momentum more to menu news than delivery, as the delivery rollout began later in the quarter [91] Question: How is the company addressing potential tariff impacts? - Management indicated that about 80% of their cost basket is domestically sourced, minimizing exposure to tariffs [110] Question: What are the expectations for the Fine Dining segment? - Management expressed surprise at the Fine Dining performance, noting that consumers were willing to spend during the holiday season [122]

Economic & Earnings CommentaryWe had bounced off early-morning lows in today’s pre-market trading, but it was very temporary and indexes look what looked like it may have been a hard turn lower. It’s not: things are now pretty steadily in the red. The Dow is -160 points at the hour, the S&P 500 is -23 points and the Nasdaq -120. The small-cap Russell 2000 is down a deeper percentage, -14 points.Fed day yesterday gave us a pretty decent rally, but market indexes have a ways to go to turn everything around, a ...

Darden Restaurants (DRI) reported $3.16 billion in revenue for the quarter ended February 2025, representing a year-over-year increase of 6.2%. EPS of $2.80 for the same period compares to $2.62 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.21 billion, representing a surprise of -1.54%. The company delivered an EPS surprise of -0.36%, with the consensus EPS estimate being $2.81.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...