Zacks: Brokerages Anticipate Darden Restaurants, Inc. (NYSE:DRI) Will Announce Quarterly Sales of $1.59 Billion


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Brokerages expect Darden Restaurants, Inc. (NYSE:DRI) to post sales of $1.59 billion for the current quarter, Zacks reports. Eleven analysts have made estimates for Darden Restaurants’ earnings, with the highest sales estimate coming in at $1.64 billion and the lowest estimate coming in at $1.51 billion. Darden Restaurants reported sales of $2.35 billion in the same quarter last year, which indicates a negative year-over-year growth rate of 32.3%. The business is expected to announce its next quarterly earnings results on Thursday, March 18th.

According to Zacks, analysts expect that Darden Restaurants will report full year sales of $6.78 billion for the current financial year, with estimates ranging from $6.39 billion to $7.56 billion. For the next year, analysts anticipate that the firm will post sales of $8.84 billion, with estimates ranging from $8.32 billion to $9.39 billion. Zacks’ sales averages are a mean average based on a survey of research firms that follow Darden Restaurants.

Darden Restaurants (NYSE:DRI) last announced its quarterly earnings results on Thursday, December 17th. The restaurant operator reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.71 by $0.03. Darden Restaurants had a negative net margin of 1.70% and a positive return on equity of 10.47%. The company had revenue of $1.66 billion for the quarter, compared to analysts’ expectations of $1.69 billion. During the same quarter in the previous year, the business posted $1.12 earnings per share. Darden Restaurants’s quarterly revenue was down 19.4% on a year-over-year basis.

Several brokerages recently weighed in on DRI. Stephens boosted their price target on shares of Darden Restaurants from $115.00 to $135.00 and gave the stock an “overweight” rating in a research report on Friday, December 18th. Raymond James boosted their price objective on shares of Darden Restaurants from $120.00 to $130.00 and gave the company an “outperform” rating in a research report on Thursday, December 10th. Cowen boosted their price objective on shares of Darden Restaurants from $102.00 to $113.00 and gave the company a “market perform” rating in a research report on Friday, November 20th. Bank of America boosted their price objective on shares of Darden Restaurants from $100.00 to $115.00 and gave the company a “buy” rating in a research report on Friday, September 25th. Finally, Wedbush boosted their price objective on shares of Darden Restaurants from $115.00 to $123.00 and gave the company a “neutral” rating in a research report on Monday, December 21st. They noted that the move was a valuation call. Thirteen research analysts have rated the stock with a hold rating, nineteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average price target of $110.90.

DRI traded down $2.47 during trading hours on Wednesday, hitting $124.86. The company’s stock had a trading volume of 844,786 shares, compared to its average volume of 1,316,590. The business’s 50-day moving average price is $118.80 and its 200-day moving average price is $108.26. Darden Restaurants has a 12 month low of $26.15 and a 12 month high of $128.44. The stock has a market cap of $16.27 billion, a price-to-earnings ratio of -130.06, a P/E/G ratio of 2.19 and a beta of 1.43. The company has a current ratio of 0.72, a quick ratio of 0.59 and a debt-to-equity ratio of 0.38.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, February 1st. Investors of record on Friday, January 8th will be paid a $0.37 dividend. The ex-dividend date is Thursday, January 7th. This is a positive change from Darden Restaurants’s previous quarterly dividend of $0.30. This represents a $1.48 dividend on an annualized basis and a yield of 1.19%. Darden Restaurants’s dividend payout ratio is 47.28%.

In related news, SVP John W. Madonna sold 2,500 shares of the company’s stock in a transaction dated Tuesday, December 22nd. The shares were sold at an average price of $119.63, for a total value of $299,075.00. Following the completion of the sale, the senior vice president now directly owns 1,962 shares of the company’s stock, valued at $234,714.06. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Melvin John Martin sold 2,800 shares of the business’s stock in a transaction dated Wednesday, December 23rd. The stock was sold at an average price of $118.84, for a total transaction of $332,752.00. Following the completion of the transaction, the insider now owns 6,875 shares of the company’s stock, valued at $817,025. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 6,300 shares of company stock valued at $726,897. 1.00% of the stock is owned by insiders.

A number of institutional investors have recently made changes to their positions in DRI. International Assets Investment Management LLC bought a new position in Darden Restaurants in the third quarter worth about $29,000. Chiron Capital Management LLC bought a new position in Darden Restaurants in the third quarter worth about $33,000. Front Row Advisors LLC raised its holdings in Darden Restaurants by 26.5% in the second quarter. Front Row Advisors LLC now owns 731 shares of the restaurant operator’s stock worth $55,000 after purchasing an additional 153 shares in the last quarter. Freestone Capital Holdings LLC bought a new position in Darden Restaurants in the third quarter worth about $55,000. Finally, Liberty One Investment Management LLC raised its holdings in Darden Restaurants by 79.1% in the third quarter. Liberty One Investment Management LLC now owns 609 shares of the restaurant operator’s stock worth $61,000 after purchasing an additional 269 shares in the last quarter. Institutional investors and hedge funds own 82.87% of the company’s stock.

Darden Restaurants Company Profile

Darden Restaurants, Inc, through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 31, 2020, it owned and operated approximately 1,804 restaurants, which included 868 under the Olive Garden, 522 under the LongHorn Steakhouse, 165 under the Cheddar's Scratch Kitchen, 81 under the Yard House, 60 under The Capital Grille, 44 under the Seasons 52, 41 under the Bahama Breeze, and 23 under the Eddie V's Prime Seafood brands.

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Earnings History and Estimates for Darden Restaurants (NYSE:DRI)

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