Darden Restaurants (DRI) Beats Q4 Earnings Estimates

Core Viewpoint - Darden Restaurants reported quarterly earnings that slightly exceeded expectations, but revenue fell short of consensus estimates, indicating mixed performance in the current fiscal environment [1][2][7]. Financial Performance - Darden Restaurants posted revenues of $2.96 billion for the quarter ended May 2024, missing the Zacks Consensus Estimate by 0.88%, compared to $2.77 billion in the same quarter last year [2]. - The company reported earnings of $2.65 per share, beating the Zacks Consensus Estimate of $2.62 per share, and showing an increase from $2.58 per share a year ago [7]. - The current consensus EPS estimate for the upcoming quarter is $1.88 on revenues of $2.84 billion, and for the current fiscal year, it is $9.52 on revenues of $11.95 billion [5]. Stock Performance - Darden Restaurants shares have declined approximately 7.5% since the beginning of the year, while the S&P 500 has gained 15% [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [10]. Earnings Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [9]. - Over the last four quarters, the company has surpassed consensus EPS estimates three times, indicating a generally positive trend in earnings performance [8]. Industry Context - The Retail - Restaurants industry, to which Darden Restaurants belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting potential challenges ahead [14].