Darden Restaurants to report fiscal Q1 numbers

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Restaurant chain Darden Restaurants (DRI) will report fiscal first-quarter numbers before the market open September 20. The consensus calls for earnings of $1.22 for the quarter, up from $0.99 during the same period last year. DRI stock has appreciated 23.2% on the year.

Technical Analysis

DRI was recently trading at $118.7 down $2.23 from its 12-month high and $41.15 above its 12-month low. InvestorsObserver’s Stock Score Report gives DRI a 89 long-term technical score and a 94 short-term technical score. The stock has recent support above $115 and recent resistance below $121. Of the 22 analysts who cover the stock 11 rate it Strong Buy, 1 rate it Buy, 10 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell. DRI gets a score of 75 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Darden has been a strong outperformer in 2018, with the stock rising sharply in reaction to a string of three consecutive better than expected quarterly reports. Last quarter the company reported year over year earnings growth of 17.8%, and if the company is able to post earnings in-line with the consensus for its most recent quarter it would translate to a 23.2% jump from the same period last year. The street is actually betting on even stronger growth, with a whisper number of $1.25, which would be a 26% year over year increase. One thing to be aware of is that the stock is priced for perfection, with a trailing P/E of 25 and a forward P/E of 19.5. With the stock up so sharply this year already, there is a decent amount of downside risk should results fail to impress the market, so traders with long positions in the stock should have a clear exit strategy in mind just in case the stock does sell off in order to lock in some of the recent gains. Analysts have an average price target of $113.28 on the stock.

About Darden Restaurants Inc.

Darden is one of the largest players in the $185 billion U.S. casual dining industry. Olive Garden (866 units), LongHorn (514), and Cheddar's Scratch Kitchen (161 company-owned and 14 franchise units) are its core brands, while the smaller, faster-growing specialty restaurant group is made up of Yard House (79), The Capital Grille (58), Seasons 52 (44), Bahama Breeze (42), and Eddie V's (21). In November 2015, the company spun off selected real estate and restaurant assets into Four Corners Property Trust.

  • Last Price:
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  • Change:
    $-6.45 (-5.07%)
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  • Market Capitalization:
    $14.8 B
  • Day's Range:
    $120.44 - $123.91
  • Dividend Yield:
  • 52-week Range:
    $128 - $95.83
  • P-E:
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  • Earnings Date:
    not available
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  • Sector:
    Consumer Cyclical
  • Industry:
  • Analyst Average Recommendation:
    Moderate Buy

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