Darden Restaurants, Inc. (NYSE: DRI) is scheduled to release its earnings report for the first quarter of fiscal 2025 on September 19, 2024, before the market opens. Analysts are anticipating an earnings per share (EPS) of $1.83, representing a modest 2.8% increase from the same quarter last year, when EPS was $1.78. Revenue is expected to hit $2.8 billion, which would be a 2.6% year-over-year increase.
Darden’s (NYSE: DRI) earnings have been relatively consistent, and they often exceed expectations. In the last quarter (Q4 2024), Darden (NYSE: DRI) reported an EPS of $2.65, beating estimates by $0.04, and their revenue of $3 billion also surpassed the projected $2.97 billion. Historically, the stock has shown mild to moderate movements post-earnings, with positive surprises typically driving short-term gains.
Darden (NYSE: DRI) operates several well-known restaurant chains, including Olive Garden, LongHorn Steakhouse, and the recently acquired Ruth’s Chris Steak House. Olive Garden remains the company’s top performer, with expected sales of $1.24 billion for Q1 2025, a 1.2% increase year-over-year. LongHorn Steakhouse is projected to bring in $704 million, with a growth rate of over 5%. Fine dining, driven by Ruth’s Chris, is expected to see an 8.6% growth in sales.
The stock currently trades with a price-to-earnings (P/E) ratio of about 18.7, in line with industry peers. Investors will be closely watching Darden’s (NYSE: DRI) ability to manage inflationary pressures, particularly rising labor and food costs. Competitors in the sector, like Cracker Barrel (CBRL), are also set to release earnings soon, making this a critical period for restaurant operators as they contend with similar challenges. Cracker Barrel (CBRL) has faced its own inflation-related hurdles but has shown resilience through its blend of dining and retail offerings.
As with Cracker Barrel (CBRL), investors will be keen to see whether Darden (NYSE: DRI) can maintain or surpass expectations in a competitive environment, particularly as the holiday season approaches.
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