Core Viewpoint - Darden Restaurants Inc. is expected to report strong fourth-quarter results, with analysts predicting a beat and positive guidance for fiscal year 2026, although some of this may already be reflected in the stock's performance [1][4]. Group 1: Financial Performance Expectations - Analysts from Truist Securities predict Olive Garden's same-store sales (SSS) will rise by 6.5% in the quarter, surpassing the 4.5% consensus and likely exceeding investor expectations [2]. - The fourth-quarter same-store sales estimate has been raised to +4.5% and EPS forecast to $3.02, both above the consensus estimates of +3.6% and $2.96 [3]. - For fiscal year 2026, the blended SSS forecast is increased to +3.8% and EPS to $11.05, up from +3.5% and $10.92 respectively [3]. Group 2: Strategic Focus and Market Position - Darden is likely to reaffirm its long-term goal of a 10%–15% total shareholder return, with a greater emphasis on new store openings rather than margin expansion [2]. - Olive Garden, which accounts for approximately 43% of Darden's sales, is seen as a key driver for the company's performance, benefiting from delivery growth and enhanced marketing efforts [5]. - Analysts maintain a bullish outlook on Darden, with expectations of continued earnings upside into fiscal year 2026 despite the stock's elevated price-to-earnings (P/E) multiple of 21x [4][5]. Group 3: Analyst Ratings and Price Forecasts - Truist Securities analyst Jake Bartlett has reiterated a Buy rating on Darden, raising the price forecast from $230 to $252 [8]. - Oppenheimer analyst Brian Bittner has also reiterated an Outperform rating, adjusting the price forecast from $230 to $250 [8].

Core Insights - Darden Restaurants, Inc. (DRI) is set to report its fourth-quarter fiscal 2025 results on June 20, with earnings per share (EPS) expected to be $2.96, reflecting an 11.7% increase from the previous year [1][8] - Revenue is projected at $3.26 billion, indicating a 10.3% rise compared to the same quarter last year [2][8] Factors Influencing Performance - Darden's fourth-quarter performance is anticipated to benefit from strong brand momentum, strategic menu promotions, and enhanced digital capabilities [3] - Key promotions at Olive Garden, such as the "Buy One, Take One" offer, and seasonal menu items at LongHorn Steakhouse are expected to drive customer traffic [4] - Revenue contributions from Olive Garden and LongHorn Steakhouse are predicted to increase by 6.2% and 9.9% year over year, reaching $1.4 billion and $838 million, respectively [5] Cost Considerations - The partnership with Uber Direct is likely to positively impact performance, with early trends showing check averages approximately 20% higher than traditional to-go orders [6] - However, inflationary pressures, particularly in commodity and labor costs, are expected to affect margins, with an overall inflation rate projected at 3% for the quarter [7] Earnings Prediction - The model indicates a potential earnings beat for Darden, with an Earnings ESP of +0.08% and a Zacks Rank of 3 [8][9]

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].