On Thursday, investors chewed on the mixed results of the Darden Restaurants Q4 report, sending the stock price up 2.5%. Adjusted earnings per share were $2.65, just slightly topping analyst estimates of $2.61. Its total sales were up 6.8% to $3 billion, higher than the estimated $2.98 billion and the $2.77 billion that was reported in Q4 of last year. This growth was attributed to the company’s 80 Ruth’s Chris restaurants, which were acquired in June of last year, and more than three dozen other new restaurants. Revenue, however, was $2.96 billion versus the $2.97 billion that was projected. While Olive Garden sales fell 1.5% and the company’s fine-dining segment decreased by 2.6%, LongHorn Steakhouse saw growth, with same-store sales rising 4%.
Who Is Darden Restaurants?
In addition to the restaurant chains already mentioned, Darden Restaurants owns and operates The Capital Grille, Seasons 52, Cheddar’s Scratch Kitchen, Eddie V’s, Yard House, and Bahama Breeze Island Grill. Their three fine dining establishments and six casual dining restaurants add up to more than 1,900 locations across the U.S. in all 50 states. Its first restaurant was opened in 1938. CEO Rick Cardenas cites consumers’ inflation and job market concerns as the reason for the flat sales and says that the company is focused on strategic pricing and profitable growth. Darden’s FY 2025 outlook anticipates same-store sales growth of 1% to 2%, earnings per share of $9.40 to $9.60, and net sales of $11.8 billion to $11.9 billion.
What The Analysts Are Saying
Overall, analysts see Darden Restaurants as being resilient in a challenging marketplace. Another plus for investors was the company’s announced quarterly dividend of $1.40 per share, which is a 6.9% increase from 2024 Q3. It will also continue its share buyback program, repurchasing about $97.3 million of common stock.
Based on 27 analysts, the consensus for DRI is a Strong Buy with an average price target of $174.31. On Friday, shares were trading down by about 1.25% at $152.44.
Neither Julie Stoller nor Stocks.News has positions in this company.
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Contributing Writer
As a professional writer since 2012, Julie Stoller has covered many industries, from healthcare and technology to consumer products and industrials. She has written about IPOs, spinoffs, ETFs, stock splits, commodities, legislative actions impacting investors, and macroeconomic issues. While keeping up with the latest meme stocks and trends, Julie's special interests are discovering ...