Group 1 - Darden Restaurants, Inc. is set to release its fourth-quarter financial results on June 20, with expected earnings of $2.96 per share, an increase from $2.65 per share in the same quarter last year [1] - The company projects quarterly revenue of $3.26 billion, up from $2.96 billion a year earlier [1] - In the third quarter, Darden reported revenue growth of 6.2% year-on-year to $3.158 billion, which was below the analyst consensus estimate of $3.215 billion [2] Group 2 - Analyst ratings for Darden Restaurants show varied opinions, with Wells Fargo maintaining an Equal-Weight rating and increasing the price target from $200 to $225 [5] - Evercore ISI Group maintained an Outperform rating and raised the price target from $230 to $250 [5] - UBS maintained a Buy rating and boosted the price target from $225 to $245, while Jefferies upgraded the stock from Underperform to Hold and raised the price target from $165 to $210 [5]

Group 1 - Darden Restaurants (NYSE: DRI) is expected to announce its fiscal fourth-quarter earnings on June 20, 2025, with analysts predicting earnings of $2.94 per share and revenue of $3.25 billion, reflecting a 14% increase in earnings and a 10% rise in sales year-over-year [2] - In the fiscal 2025 third quarter, Darden achieved total sales of $3.2 billion, a 6.2% increase, driven by acquisitions and new restaurant openings, including the positive impact from the purchase of Chuy's [3] - Same-restaurant sales improved by 0.7%, with LongHorn Steakhouse seeing a 2.6% increase, while Olive Garden had a modest growth of 0.6%, and the Fine Dining sector experienced a decline of 0.8% [3] Group 2 - Darden reaffirmed its annual revenue forecast of $12.1 billion and adjusted its earnings outlook to a range of $9.45 to $9.52 per share [3] - The company has a current market capitalization of $25 billion, with total revenue over the past twelve months at $12 billion, operating profit at $1.4 billion, and net income at $1.1 billion [3] Group 3 - Historically, DRI stock has risen 55% of the time following earnings releases, with a median one-day increase of 5.8% and a maximum observed rise of 15% [2][5] - Over the last five years, there have been 20 earnings data points for DRI, with 11 positive and 9 negative one-day returns, resulting in positive returns approximately 55% of the time, though this percentage drops to 42% when considering the last 3 years [5]

Core Viewpoint - Darden Restaurants (DRI) is expected to report quarterly earnings of $2.93 per share, a 10.6% increase year-over-year, with revenues projected at $3.26 billion, reflecting a 10.3% increase compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.3% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Sales Projections - Analysts predict 'Sales- Olive Garden' will reach $1.35 billion, a 5.6% increase from the prior-year quarter [5]. - 'Sales- Other Business' is expected to be $733.06 million, indicating a 24.3% increase year-over-year [5]. - 'Sales- Fine Dining' is projected at $356.37 million, reflecting a 9% increase from the previous year [5]. - 'Sales- LongHorn Steakhouse' is forecasted to reach $823.83 million, an 8% year-over-year increase [6]. - The 'Same-restaurant sales - LongHorn Steakhouse - YoY change' is expected to be 5.4%, up from 4% in the same quarter last year [6]. Company-Owned Restaurants - The estimate for 'Company-owned restaurants - Total' is 2,183, compared to 2,031 a year ago [6]. - 'Company-owned restaurants - Olive Garden' is projected to reach 933, up from 920 last year [7]. - 'Company-owned restaurants - LongHorn Steakhouse' is estimated at 592, compared to 575 in the same quarter last year [7]. - 'Company-owned restaurants - Bahama Breeze' is expected to remain at 43, unchanged from the previous year [8]. - 'Company-owned restaurants - Seasons 52' is projected to reach 45, up from 44 last year [8]. - 'Company-owned restaurants - Eddie V's' is estimated at 31, compared to 30 a year ago [9]. - 'Company-owned restaurants - Yard House' is expected to reach 90, up from 88 last year [9]. Stock Performance - Over the past month, Darden Restaurants shares have recorded a return of +2.8%, outperforming the Zacks S&P 500 composite's +1.7% change [10].

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Group 1 - Darden Restaurants, Inc. plans to release its fiscal 2025 fourth quarter financial results on June 20, 2025, before the market opens [1] - A conference call will follow at 8:30 am ET, where CEO Rick Cardenas and senior management will discuss the results and conduct a Q&A session [1] - A replay of the conference call will be available shortly after the live broadcast for those unable to listen [1] Group 2 - Darden operates a diverse portfolio of restaurant brands, including Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House, among others [2] - The company emphasizes its differentiated brands as a key aspect of its business strategy [2]

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].