Restaurant company Darden (NYSE:DRI) will be reporting results this Thursday before market open. Here’s what to look for.
Darden met analysts’ revenue expectations last quarter, reporting revenues of $3.27 billion, up 10.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ same-store sales estimates but a significant miss of analysts’ EPS estimates.
Is Darden a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Darden’s revenue to grow 10.3% year on year to $3.04 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Darden has missed Wall Street’s revenue estimates six times over the last two years.
With Darden being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for restaurants stocks. However, the whole sector has been hit hard over the last month as stocks in Darden’s peer group are down 3.1% on average. Darden is up 2.5% during the same time and is heading into earnings with an average analyst price target of $232.83 (compared to the current share price of $210.48).
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