Zacks: Brokerages Anticipate Darden Restaurants, Inc. (NYSE:DRI) Will Announce Quarterly Sales of $1.63 Billion


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Wall Street brokerages expect that Darden Restaurants, Inc. (NYSE:DRI) will announce sales of $1.63 billion for the current quarter, according to Zacks. Eleven analysts have provided estimates for Darden Restaurants’ earnings. The highest sales estimate is $1.80 billion and the lowest is $1.56 billion. Darden Restaurants reported sales of $2.35 billion in the same quarter last year, which would suggest a negative year-over-year growth rate of 30.6%. The company is scheduled to issue its next quarterly earnings results on Thursday, March 18th.

According to Zacks, analysts expect that Darden Restaurants will report full-year sales of $6.74 billion for the current fiscal year, with estimates ranging from $6.39 billion to $7.07 billion. For the next year, analysts expect that the company will report sales of $8.83 billion, with estimates ranging from $8.32 billion to $9.39 billion. Zacks’ sales averages are an average based on a survey of analysts that that provide coverage for Darden Restaurants.

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

A number of brokerages have commented on DRI. Piper Sandler increased their price target on shares of Darden Restaurants from $123.00 to $135.00 and gave the company an “overweight” rating in a research note on Wednesday, January 27th. Wedbush raised their target price on shares of Darden Restaurants from $115.00 to $123.00 and gave the stock a “neutral” rating in a research note on Monday, December 21st. They noted that the move was a valuation call. Deutsche Bank Aktiengesellschaft raised their target price on shares of Darden Restaurants from $97.00 to $124.00 and gave the stock a “hold” rating in a research note on Monday, December 21st. MKM Partners raised their target price on shares of Darden Restaurants from $115.00 to $125.00 in a research note on Monday, December 21st. Finally, Raymond James raised their target price on shares of Darden Restaurants from $130.00 to $137.50 and gave the stock an “outperform” rating in a research note on Tuesday, January 26th. Ten equities research analysts have rated the stock with a hold rating, twenty have given a buy rating and one has given a strong buy rating to the company’s stock. Darden Restaurants presently has a consensus rating of “Buy” and a consensus target price of $114.56.

DRI stock traded down $0.69 during trading hours on Tuesday, reaching $134.31. The stock had a trading volume of 1,150,516 shares, compared to its average volume of 1,459,512. The stock has a market capitalization of $17.50 billion, a PE ratio of -140.63, a price-to-earnings-growth ratio of 2.31 and a beta of 1.48. The company has a debt-to-equity ratio of 0.38, a current ratio of 0.72 and a quick ratio of 0.59. The stock has a 50-day simple moving average of $124.70 and a 200 day simple moving average of $113.05. Darden Restaurants has a fifty-two week low of $26.15 and a fifty-two week high of $137.91.

The company also recently announced a quarterly dividend, which was paid on Monday, February 1st. Shareholders of record on Friday, January 8th were issued a $0.37 dividend. This is a positive change from Darden Restaurants’s previous quarterly dividend of $0.30. This represents a $1.48 annualized dividend and a yield of 1.10%. The ex-dividend date was Thursday, January 7th. Darden Restaurants’s dividend payout ratio (DPR) is currently 47.28%.

In related news, insider Melvin John Martin sold 2,800 shares of Darden Restaurants stock in a transaction that occurred on Wednesday, December 23rd. The shares were sold at an average price of $118.84, for a total transaction of $332,752.00. Following the sale, the insider now directly owns 6,875 shares of the company’s stock, valued at approximately $817,025. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Daniel J. Kiernan sold 16,198 shares of Darden Restaurants stock in a transaction that occurred on Friday, February 5th. The shares were sold at an average price of $132.70, for a total transaction of $2,149,474.60. Following the sale, the insider now directly owns 21,512 shares in the company, valued at $2,854,642.40. The disclosure for this sale can be found here. Over the last three months, insiders sold 100,455 shares of company stock worth $13,205,994. Insiders own 1.00% of the company’s stock.

Institutional investors have recently made changes to their positions in the stock. Cowa LLC bought a new stake in shares of Darden Restaurants during the 4th quarter valued at approximately $25,000. Veritas Investment Partners UK Ltd. bought a new stake in shares of Darden Restaurants during the 4th quarter valued at approximately $25,000. MUFG Americas Holdings Corp bought a new stake in shares of Darden Restaurants during the 4th quarter valued at approximately $27,000. Ceredex Value Advisors LLC bought a new stake in shares of Darden Restaurants during the 4th quarter valued at approximately $27,000. Finally, International Assets Investment Management LLC bought a new stake in shares of Darden Restaurants during the 3rd quarter valued at approximately $29,000. 89.35% of the stock is currently owned by institutional investors.

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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