Darden to Post Q4 Earnings: What's in Store for the Stock?

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]