- Darden’s fourth-quarter sales were $3.27 billion, an 11% increase from last year, and slightly above the estimated $3.26 billion.
- Olive Garden reported sales of $1.38 billion, up 8.1% year-over-year, surpassing the expected $1.35 billion.
- LongHorn had sales of $833.8 million, a 9.3% increase compared to last year, exceeding the projected $821.8 million.
- Sales in the Fine Dining segment were $334.6 million, a 2.3% year-over-year rise, but below the expectation of $344.9 million.
- Other Business sales reached $722.3 million, an impressive 22% year-over-year gain, although slightly under the forecast of $739.3 million.
- The company’s earnings per share (EPS) from continuing operations remained at $2.58, unchanged from last year.
- Adjusted EPS from continuing operations increased to $2.98, compared to $2.65 in the previous year, and surpassed the estimated $2.96.
- Operating income was reported at $382.8 million, a 3.2% decline year-over-year, and below the anticipated $444.1 million.
- Leadership highlights the robust performance and durable cash flows reflecting Darden’s strong operating model.
- Over the past 30 years, Darden has consistently delivered an annualized total shareholder return of 10% or more over any 10 fiscal-year period.
- Analyst recommendations currently include 19 buy ratings, 12 holds, and 1 sell.
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Darden Restaurants on Smartkarma
On Smartkarma, an independent investment research network, analysts like Baptista Research are closely watching Darden Restaurants. In their analysis titled “Darden Restaurants: An Insight Into Its Delivery Strategy and Incrementality That Could Drive Brand Affinity!”, Baptista Research highlights how Darden Restaurants, a key player in the casual dining sector, showed resilience in the face of a challenging macroeconomic environment. Despite inclement weather impacting sales, the company achieved a 6% year-over-year sales increase to $3.2 billion, driven by a 0.7% growth in same-restaurant sales, acquisitions like Chuy’s, and new restaurant openings. The earnings per share also saw a positive 6.9% increase, indicating effective cost management amidst external challenges.
In another report by Baptista Research titled “Darden’s Uber Partnership and Steakhouse Boom: Why Its Stock Is Holding Strong Despite Dropping Sales! – Major Drivers“, the analysts delve into Darden Restaurants‘ recent financial performance. Although the company experienced an earnings miss and a decline in same-store sales in the first fiscal quarter, Baptista Research notes positive developments like a partnership with Uber Technologies. Darden reported earnings of $1.75 per share, slightly below expectations, and revenue of $2.76 billion, missing forecasts. Despite these challenges, acquisitions such as Tex-Mex chain Chuy’s bolstered total revenue year-over-year, although same-store sales decreased by 1.1%, pointing to ongoing challenges in attracting diners.
A look at Darden Restaurants Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Darden Restaurants has a positive long-term outlook. With strong Momentum score of 5, the company is showing impressive performance trends. Its Dividend, Growth, and Resilience scores of 3 indicate a stable and growing business model, while the Value score of 2 suggests that the stock may not be undervalued. Darden Restaurants, Inc. is known for owning and operating full-service restaurants across North America, offering a variety of seafood and Italian cuisines under multiple brand names.
Overall, Darden Restaurants seems to be in a good position for the future with balanced scores across different key factors. Investors may find the company attractive due to its consistent performance and growth potential. With a mix of established brands and a strong momentum in the market, Darden Restaurants could be a solid choice for those looking for stability and potential returns in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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