Darden Restaurants will post earnings on June 27

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Restaurant operator Darden Restaurants (DRI) will post its fiscal fourth-quarter numbers on June 27. The company will report its quarterly numbers before the market open, with the consensus calling for earnings of $1.15 per share, on revenue of $1.86 billion. During the same period last year it earned $1.10 on sales of $1.79 billion. DRI has shown a lot of strength in 2017, with shares rising 23.1% on the year.

Technical Analysis

DRI was recently trading at $88.69, down $4.33 from its 12-month high and $29.19 above its 12-month low. Technical indicators for DRI are bullish and the stock is in a strong upward trend. The stock has recent support above $88.00 and recent resistance below $90.85. Of the 18 analysts who cover the stock, six rate it a “strong buy”, 11 rate it a “hold”, and one rates it a “sell”. The stock receives S&P Capital IQ’s 4 STARS “Buy” ranking.

Analysts' Thoughts

Darden Restaurants has been a top performer since November, and the stock is currently just shy of its all-time high. Earnings have been rising nicely, and expected to continue doing so moving forward. Analysts predict earnings growth, per annum, of 11.7% over the next five years, and for the fourth-quarter the consensus calls for year over year earnings growth of 4.5%. The Street expects an earnings beat, with a whisper number of $1.17, which is two pennies above the general consensus estimate. Based on past performance, it would be hard to bet against the whisper number. Darden has posted better-than-expected profits nine of the last 10 quarters. The stock has a P/E of 22.6, and analysts have an average price target of $85.00 on the stock. Based on the valuation, and the price target being below the current share price, the upside could be limited, but another strong report could lead to adjustments in the stock’s price targets and allow for shares to build on recent gains.

DRI
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:
    $110.29
  • Previous Close:
    $110.45
  • Change:
    $-0.16 (-0.14%)
  • Open:
    $110.66
  • Volume:
    1,266,217
  • Average Volume (100 Day):
    1,346,698
  • Market Capitalization:
    $13.5 B
  • Day's Range:
    $109.81 - $110.91
  • Dividend Yield:
    3.19%
  • 52-week Range:
    $128 - $95.83
  • P-E:
    20.20
  • EPS:
    $5.75
  • Earnings Date:
    12/17/19
  • Ex Dividend Date:
    10/9/19
  • Sector:
    Consumer Cyclical
  • Industry:
    Restaurants
  • Analyst Average Recommendation:
    Moderate Buy

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