Restaurant company Darden (NYSE:DRI) will be announcing earnings results tomorrow morning. Here’s what you need to know.
Darden missed analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $2.76 billion, flat year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA 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 5.2% year on year to $2.87 billion, slowing from the 9.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.02 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 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, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. Darden is up 2.9% during the same time and is heading into earnings with an average analyst price target of $181.62 (compared to the current share price of $165.46).
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