Restaurant company Darden (NYSE:DRI) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
Darden met analysts’ revenue expectations last quarter, reporting revenues of $2.96 billion, up 6.8% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations.
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 2.5% year on year to $2.8 billion, slowing from the 11.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.83 per share.
The majority of analysts covering the company have 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 four 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, there has been positive investor sentiment in the segment, with share prices up 2.1% on average over the last month. Darden is up 4.1% during the same time and is heading into earnings with an average analyst price target of $170.18 (compared to the current share price of $161.53).
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