Core Insights - Darden Restaurants (DRI) is expected to report quarterly earnings of $2.82 per share, reflecting a 7.6% increase year-over-year, with revenues projected at $3.21 billion, an 8% increase from the previous year [1] Earnings Estimates and Revisions - The consensus EPS estimate for the quarter has been adjusted upward by 0.1% over the past 30 days, indicating a reassessment by analysts [1][2] Sales Projections - Analysts project 'Sales- Olive Garden' to reach $1.36 billion, a year-over-year increase of 4% [4] - 'Sales- Other Business' is estimated at $689.74 million, showing a significant year-over-year change of 23% [4] - 'Sales- Fine Dining' is forecasted at $386.57 million, reflecting a 3.7% increase from the prior year [4] Company-Owned Restaurants Metrics - 'Sales- LongHorn Steakhouse' is expected to reach $783.13 million, indicating a 7.2% increase from the previous year [5] - The total number of 'Company-owned restaurants' is estimated to be 2,174, up from 2,022 in the same quarter last year [5] - 'Company-owned restaurants - Olive Garden' is projected at 930, compared to 917 in the same quarter last year [5] Additional Company-Owned Restaurants Estimates - 'Company-owned restaurants - LongHorn Steakhouse' is expected to be 584, up from 572 in the same quarter last year [6] - 'Company-owned restaurants - Bahama Breeze' is projected to remain at 43, consistent with the previous year [6] - 'Company-owned restaurants - Seasons 52' is expected to reach 45, slightly up from 44 last year [7] - 'Company-owned restaurants - Eddie V's' is projected to remain at 30, unchanged from the previous year [7] - 'Company-owned restaurants - Yard House' is expected to be 89, up from 88 last year [8] - 'Company-owned restaurants - Cheddar's Scratch Kitchen' is projected at 183, compared to 181 in the same quarter last year [8] Stock Performance - Darden Restaurants shares have decreased by 2.7% over the past month, while the Zacks S&P 500 composite has declined by 7.7% [8]

Company Performance - Darden Restaurants (DRI) has returned 4.9% year-to-date, outperforming the Retail-Wholesale sector average of 2.4% [4] - The Zacks Consensus Estimate for DRI's full-year earnings has increased by 0.5% over the past 90 days, indicating improving analyst sentiment [4] - Darden Restaurants holds a Zacks Rank of 2 (Buy), suggesting a favorable earnings outlook [3] Industry Comparison - Darden Restaurants is part of the Retail - Restaurants industry, which has 39 companies and is currently ranked 71 in the Zacks Industry Rank [6] - The average return for the Retail - Restaurants industry this year is 6.1%, indicating that DRI is slightly underperforming its industry [6] - In contrast, Hagerty, Inc. (HGTY), another stock in the Retail-Wholesale sector, has returned 3.7% year-to-date and has a Zacks Rank of 2 (Buy) [5]

Core Insights - Darden Restaurants, Inc. is set to release its fiscal 2025 third quarter financial results on March 20, 2025, before market opening [1] - A conference call will follow at 8:30 am ET, where CEO Rick Cardenas and senior management will discuss the results and answer questions [1][2] Company Overview - Darden operates a diverse portfolio of restaurant brands, including Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House, among others [2] - For more information about the company, visit their official website [2]

Industry Overview - Consumers are experiencing price pressures due to rising inflation, which has raised concerns about the overall health of the economy. Despite this, spending at food services and drinking places has remained strong, indicating a shift in consumer behavior towards dining out [1][4]. - The U.S. restaurant industry is projected to reach $1.5 trillion by 2025, reflecting growth potential despite current economic challenges [9]. Retail Sales Performance - Overall retail sales fell by 0.9% in January, marking the first decline since August and the sharpest drop in nearly two years. This decline is attributed to extreme winter temperatures and wildfires [5]. - In contrast, restaurant sales totaled $90.8 billion in January, showing a month-over-month increase of 0.9% and a year-over-year increase of 6.9% [4]. Consumer Spending Trends - The consumer price index (CPI) increased by 0.5% in January, following a 0.4% rise in December, indicating ongoing inflationary pressures [6]. - Despite inflation, consumers are spending lavishly at restaurants, suggesting that many households have solid cash reserves [4][6]. Competitive Landscape - Quick-service restaurants focusing on affordability have shown resilience in the current market, as budget-conscious diners seek low-cost meal options [7]. - Competition in the value-driven sector has intensified, with brands enhancing promotions and introducing cost-saving deals to attract and retain customers [8]. Company Highlights - **Brinker International, Inc. (EAT)**: Expected earnings growth rate for the current year is 98.8%, with a Zacks Consensus Estimate improvement of 47.1% over the past 60 days. Currently holds a Zacks Rank 1 [10][11][12]. - **Kura Sushi USA, Inc. (KRUS)**: Expected earnings growth rate is over 100%, with the Zacks Consensus Estimate improving more than 100% in the last 60 days. Also holds a Zacks Rank 1 [13]. - **Darden Restaurants, Inc. (DRI)**: Expected earnings growth rate is 7.2%, with a slight improvement of 0.5% in the Zacks Consensus Estimate over the past 60 days. Currently holds a Zacks Rank 2 [14]. - **Potbelly Corporation (PBPB)**: Expected earnings growth rate is 60%, with a 14.3% improvement in the Zacks Consensus Estimate over the past 60 days. Currently holds a Zacks Rank 2 [15].

Core Viewpoint - Darden Restaurants (DRI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system focuses on changes in earnings estimates, which have a strong correlation with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Darden Restaurants, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to upward pressure on its stock price [5][8]. Earnings Estimate Revisions - Darden Restaurants is projected to earn $9.52 per share for the fiscal year ending May 2025, reflecting a year-over-year increase of 7.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Darden has risen by 0.5%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - The upgrade of Darden Restaurants to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for the stock in the near term [10].

Market Analysis - The S&P 500 (SP500) was analyzed with a focus on weekly price patterns, charting all 500 stocks individually [3] - The analysis was conducted by Rob Isbitts, founder of Sungarden Investment Publishing, who has been charting investments since the 1980s [3] - Sungarden YARP Portfolio is a community dedicated to navigating the modern investment climate with a non-traditional approach to income investing [3] Investment Strategy - The approach emphasizes humility, discipline, and listening to the stories the markets tell [3] - Subscribers are taught how to interpret market signals effectively [3]

Shares of Darden Restaurants, Inc. (DRI) have surged to a new high, capturing the attention of investors eager to capitalize on its robust performance in the casual dining sector. On Thursday, the stock reached a new 52-week high of $188.94 before closing slightly lower at $188.66.As a stalwart in the industry, Darden's diversified portfolio, operational excellence and strategic initiatives have propelled it to new heights. Over the past three months, DRI has outperformed its peers, including Chipotle Mexic ...

Darden Restaurants (NYSE: DRI ), the crown jewel of full-service restaurants, is shining brighter now. This is a far cry from the mid-year outlook. Back then, only LongHorn SteakhouseI'm an Equity Analyst and Accountant specializing in restaurant stocks, with a strong foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. market. ...

Group 1 - The ideal investment is characterized by core business operations in a sector expected to grow structurally at a rate exceeding GDP growth over the next 5-10 years [1] - Profits should stem from sustainable competitive advantages that lead to attractive unit economics [1] - The investment should be managed by competent, ethical, and long-term thinkers, and should be fairly valued [1] Group 2 - The article emphasizes that past performance does not guarantee future results, indicating a cautious approach to investment [2] - There is no indication of any stock, option, or similar derivative positions held by the analyst in the companies mentioned [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [2]

Darden Restaurants (NYSE: DRI ) became part of my research interest as I studied Texas Roadhouse's competitors ( TXRH ) more in-depth. In particular, I compared LongHorn Steakhouse to Texas Roadhouse . Since Darden's spin-off from General Mills, shareholders have seen anI focus on long term growth and dividend growth investing. I follow both the US and the European stock markets, looking for undervalued stock and/or for high quality dividend growing companies that provide me with cash to reinvest. Over time ...