Macroeconomic headwinds are buffeting consumer confidence and bringing volatility especially to high-growth stocks on Wall Street. Therefore, investors look at sectors outside technology, like these three restaurant stocks to buy. The sector has demonstrated remarkable resilience. Consumer spending at restaurants surging 5% in 2023, up from 4% in 2022. Regardless of inflation, restrained consumer spending and mounting concerns of potential stagflation, analysts still anticipate sustained demand for dining-o ...

Thomas Barwick/DigitalVision via Getty Images Darden Restaurants (NYSE:DRI), the parent company of Olive Garden and LongHorn Steakhouse, as well as half a dozen other restaurant chains, is the largest operator in a very tough industry. Furthermore, the current environment is more difficult than the norm. As of this February, the consumer price index pegged food away from home prices as up 4.5% from the prior year. The jump in prices is the result of an industry struggling with increasing food and labor cost ...

Is Red Lobster's Bankruptcy the End for This Beloved Chain? jeepersmedia / Flickr A report from Bloomberg today says that Red Lobster has engaged with a law firm as it decides whether to declare bankruptcy. With 649 locations spread throughout the United States, Red Lobster is one of the country’s more well-known sit-down chains.And yet, today it’s struggling under many difficulties including onerous leases, rising labor costs, and promotions like its Endless Shrimp promotion that led to significant losse ...

Darden Restaurants, Inc. (DRI) is benefiting from its focus on opening restaurants, Ruth’s Chris acquisition and its diversified brand portfolio.Shares of this casual dining restaurant operator have gained 2.5% in the past year against the Zacks Retail - Restaurants industry’s 2.7% decline. The uptrend is attributable to the company’s intent focus on enhancing and diversifying its product portfolio, along with leveraging and strengthening its competitive advantages.The Zacks Consensus Estimate for this Zack ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 25, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 1-13666 Commission File Number DARDEN RESTAURANTS, INC. (Exact name of registrant as specified in its charter) (Registrant's telephone number, in ...

Key PointsDarden Restaurants had a mixed quarter and failed to inspire the analysts. Shares are down 6% following the release, but the uptrend is intact, and a buying opportunity will soon appear.Capital returns are solid and will continue to support the price action this year. 5 stocks we like better than Darden RestaurantsDarden Restaurants NYSE: DRI operational quality drove solid business in Q3, setting the stock up to continue its uptrend. Today's opportunity is that results were largely aligned with e ...

Olive Garden owner Darden has seen a drop in lower-income diners patronizing its restaurants.The company, which also owns Longhorn Steakhouse, on Thursday (March 21) reported earnings that showed sales up 6.8% for the quarter, driven primarily by its recently-acquired Ruth’s Chris Steakhouse chain.However, a recurring theme during the company’s earnings call was pullback among lower-income consumers.“We’re clearly seeing consumer behavior shifts,” CEO Rick Cardenas said, noting that transactions from househ ...

Darden Restaurants, Inc. (DRI) reported dismal third-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The metrics increased on a year-over-year basis.Following the results, the stock dropped 4.3% in the pre-market trading session. Negative investor sentiments were witnessed as DRI provided a lower-than-expected sales outlook for fiscal 2024. Management cited concerns relating to a challenging operating environment.Earnings & RevenuesDuring the fiscal third quarte ...

Financial Data and Key Metrics Changes - Total sales reached $3 billion, an increase of 6.8% year-over-year, with adjusted diluted net earnings per share at $2.62, aligning with expectations [39][52][53] - Adjusted EBITDA was $512 million, with a return of approximately $190 million to shareholders through dividends and share repurchases [53] - Same-restaurant sales decreased by 1%, but the company outperformed the industry by 320 basis points [52] Business Line Data and Key Metrics Changes - Olive Garden's total sales increased by 0.7%, driven by new restaurant growth, despite a 1.8% decline in same-restaurant sales [57] - LongHorn Steakhouse saw total sales increase by 5.1%, with same-restaurant sales growth of 2.3% [58] - The fine dining segment, including Ruth's Chris, faced challenges with negative same-restaurant sales, but overall segment profit margin remained flat at 21.8% [59] Market Data and Key Metrics Changes - The lower-income consumer segment showed a significant pullback, with transactions from households earning below $75,000 declining compared to last year [70][76] - The company noted that transactions from higher-income households (above $150,000) were higher than last year, indicating a mixed consumer behavior [70] Company Strategy and Development Direction - The company aims to maintain a pricing strategy below inflation over the long term, having taken less pricing than competitors [9][19] - Focus remains on core equities and execution excellence, avoiding deep discounting strategies while enhancing brand equity [7][94] - The integration of Ruth's Chris is on track, with major changes expected to be completed by the end of the fiscal year [44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a tougher operating environment than anticipated, with a broader market impact rather than specific internal missteps [12][13] - The company is monitoring consumer behavior closely, particularly among lower-income segments, and is prepared to adapt strategies as needed [76][90] - Future guidance includes total sales expectations of approximately $11.4 billion and same-restaurant sales growth of 1.5% to 2% for fiscal 2024 [61] Other Important Information - The company reported strong guest satisfaction metrics, with brands achieving high rankings in overall experience [41][45] - The Darden Foundation awarded over 100 scholarships to children of team members, emphasizing the company's commitment to education [47] Q&A Session Summary Question: How would the company manage if the environment worsens? - Management indicated they would not change their long-term strategy but may adjust marketing tactics to maintain stability [7][8] Question: What is the impact of the lower-income consumer on trends? - Management noted a significant pullback in transactions from lower-income households, while higher-income segments showed growth [70][76] Question: How does the company view pricing strategy relative to inflation? - The company plans to continue pricing below inflation, having taken less pricing than competitors over the past four years [9][19] Question: What are the expectations for unit growth next year? - Approximately two-thirds of new openings are expected from Olive Garden and LongHorn, with the remainder from other brands [23] Question: How is the integration of Ruth's Chris progressing? - The integration is on track, with successful transitions to new systems and processes [44] Question: What are the expectations for commodity inflation? - The company anticipates commodity inflation around 3% for the fourth quarter, with coverage levels consistent with historical averages [120]

Darden Restaurants (DRI) reported $2.97 billion in revenue for the quarter ended February 2024, representing a year-over-year increase of 6.8%. EPS of $2.62 for the same period compares to $2.34 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.03 billion, representing a surprise of -1.87%. The company delivered an EPS surprise of -0.38%, with the consensus EPS estimate being $2.63.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...