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Darden Restaurants Stock Hits All-Time High on Strong Olive Garden Sales
Improved same-restaurant sales and more locations helped Darden Restaurants exceed profit forecasts. The operator of the Olive Garden, LongHorn Steakhouse, and other chains benefited from the acquisition of Chuy's Tex Mex restaurants last year. Darden also announced an up to $1.0 billion stock of Darden Restaurants (DRI) traded at an all-time high Friday as the restaurant chain operator beat earnings and revenue estimates and announced a new stock buyback as it got a boost from same-restaurant sales and growth in the number of locations. The owner of chains including Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House posted fiscal 2025 fourth-quarter adjusted earnings per share (EPS) of $2.98, with revenue up 11% year-over-year to $3.27 billion. Both narrowly exceeded Visible Alpha forecasts. Same-store sales climbed 4.6%, led by a 6.9% rise at Olive Garden and 6.7% gain at LongHorn Steakhouse. All were above expecation. Darden added 25 net new restaurants in the quarter, plus it gained 103 Chuy's Tex Mex locations after its purchase of the chain last July. Revenue from Olive Garden increased more than 8% to $1.38 billion. It was 9% higher to $833.8 million at LongHorn Steakhouse, and grew more than 2% to $334.6 million at what it calls "Fine Dining" chains, which includes Ruth's Chris. Thanks to the Chuy's contribution, "Other Business" revenue jumped 22% to $722.3 million. Along with the financial report, Darden said the board authorized a new share repurchase program of up to $1.0 billion. Including a 2% rise to about $227 in recent trading Friday, Darden Restaurant shares have gained more than 20% so far this year. They hit a record $228.27 earlier in the session. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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2 hours ago
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Darden Restaurants (DRI) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended May 2025, Darden Restaurants (DRI) reported revenue of $3.27 billion, up 10.6% over the same period last year. EPS came in at $2.98, compared to $2.65 in the year-ago quarter. The reported revenue represents a surprise of +0.18% over the Zacks Consensus Estimate of $3.27 billion. With the consensus EPS estimate being $2.96, the EPS surprise was +0.68%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Darden Restaurants performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Same-restaurant sales - LongHorn Steakhouse - YoY change: 6.7% versus the eight-analyst average estimate of 5.6%. Same-restaurant sales - Consolidated - YoY change: 4.6% versus the eight-analyst average estimate of 3.6%. Same-restaurant sales - Olive Garden - YoY change: 6.9% versus the eight-analyst average estimate of 4.5%. Company-owned restaurants - Total: 2,159 compared to the 2,181 average estimate based on eight analysts. Company-owned restaurants - Olive Garden: 935 compared to the 933 average estimate based on seven analysts. Company-owned restaurants - LongHorn Steakhouse: 591 versus 592 estimated by seven analysts on average. Same-restaurant sales - Fine Dining - YoY change: -3.3% versus the six-analyst average estimate of -0.1%. Same-restaurant sales - Other Business - YoY change: 1.2% versus the six-analyst average estimate of 1.4%. Sales- Olive Garden: $1.38 billion versus $1.35 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.1% change. Sales- Other Business: $722.30 million versus the four-analyst average estimate of $728.95 million. The reported number represents a year-over-year change of +22.4%. Sales- Fine Dining: $334.60 million compared to the $359.93 million average estimate based on four analysts. The reported number represents a change of +2.3% year over year. Sales- LongHorn Steakhouse: $833.80 million versus the four-analyst average estimate of $830.09 million. The reported number represents a year-over-year change of +9.3%. View all Key Company Metrics for Darden Restaurants here>>>Shares of Darden Restaurants have returned +9.3% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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5 hours ago
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Darden Restaurants operating income slips in fourth quarter despite sales jump
- Darden Restaurants has reported a slide in fourth-quarter operating income and provided a weaker-than-anticipated outlook for its current fiscal year despite a surge in sales. The group, whose portfolio includes popular eatery chains like LongHorn Steakhouse and Chuy's, reported quarterly operating profit of $382.8 million, a slide of 3.2% versus a year earlier. Analysts had anticipated $444.1 million, according to Bloomberg consensus estimates. But sales during the period jumped by 11% to $3.27 billion, compared with estimates of $3.26 billion, bolstered in part by stronger-than-anticipated performance at Olive Garden and LongHorn. Darden (NYSE:DRI) also noted a boost from the acquisition of 103 Chuy's restaurants and 25 net new locations. "Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value," said CEO Rick Cardenas in a statement. For its 2026 fiscal year, Darden said it projects total sales growth of 7-8% and diluted net earnings per share from continuing operations of $10.50 to $10.70. Analysts had anticipated per-share income of $10.75. Mirroring peers like Domino's Pizza (NYSE:DPZ) and McDonald's (NYSE:MCD), Darden has recently been rolling out promotional drives aimed at attracting price-conscious customers wary of spending heavily during a time of broad economic uncertainty. Earlier this year, Cardenas told analysts that he expected consumers to continue to spend as long as incomes rise and outpace inflation. Recent data points have suggested that price pressures in the U.S. have been mostly benign, although economists have flagged that the impact of sweeping U.S. tariffs on inflation may still be coming. CFO Raj Vennam has also said in March that, because Darden sources most of its products domestically, it is more likely to avoid President Donald Trump's punishing import tariffs. The rest of its materials could easily be found in the U.S., he added. Shares in Darden were higher in premarket trade on Friday, erasing some earlier losses. The stock has risen by over 19% so far this year. Related articles Darden Restaurants operating income slips in fourth quarter despite sales jump Accenture shares slide despite raised full-year outlook, third quarter beat Jabil stock rises as Q3 earnings top estimates, guidance raised
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5 hours ago
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Darden Restaurants Reports Fiscal 2025 Fourth Quarter and Full Year Results; Increases Quarterly Dividend; Authorizes New $1 Billion Share Repurchase Program; And Provides Fiscal 2026 Outlook
ORLANDO, Fla., June 20, 2025 /PRNewswire/ -- Darden Restaurants, Inc. (NYSE:DRI) today reported its financial results for the fourth quarter and fiscal year ended May 25, 2025. Fourth Quarter 2025 Financial Highlights Total sales increased 10.6% to $3.3 billion driven by a blended same-restaurant sales1 increase of 4.6% and sales from the acquisition of 103 Chuy's Tex Mex (Chuy's) restaurants and 25 net new restaurants Same-restaurant sales:Consolidated Darden1 4.6 %Olive Garden 6.9 %LongHorn Steakhouse 6.7 %Fine Dining (3.3) %Other Business1 1.2 % Reported diluted net earnings per share from continuing operations were $2.58 Excluding $0.40 of Chuy's transaction and integration related costs and costs from restaurant closures, adjusted diluted net earnings per share from continuing operations were $2.98, an increase of 12.5%3 The Company repurchased $51 million of its outstanding common stock Fiscal 2025 Financial Highlights Total sales increased 6.0% to $12.1 billion driven by a blended same-restaurant sales1, 2 increase of 2.0% and sales from the acquisition of 103 Chuy's restaurants and 25 net new restaurants Same-restaurant sales:Consolidated Darden1, 2 2.0 %Olive Garden 1.7 %LongHorn Steakhouse 5.1 %Fine Dining2 (3.0) %Other Business1 0.2 % Reported diluted net earnings per share from continuing operations were $8.88 Excluding $0.67 of Chuy's transaction and integration related costs and costs from restaurant closures, adjusted diluted net earnings per share from continuing operations were $9.55, an increase of 7.5%3 "We had a strong quarter with same-restaurant sales and earnings growth that exceeded our expectations," said Darden President & CEO Rick Cardenas. "Our adherence to our winning strategy, anchored in our four competitive advantages and being brilliant with the basics, led to a successful year. Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value." 1 Will not include Chuy's until they have been owned and operated by Darden for a 16-month period (Q4 Fiscal 2026) 2 Does not include Ruth's Chris as they were not owned and operated by Darden for a 16-month period at the beginning of Fiscal 2025 3 See the "Non-GAAP Information" below for more details Segment PerformanceDuring the fourth quarter of fiscal 2025, the Company changed its reporting of segment profit to exclude pre-opening costs. Fiscal 2024 figures were recast for comparability. Segment profit represents sales, less costs for food and beverage, restaurant labor, restaurant expenses and marketing expenses. Segment profit excludes non-cash real estate related expenses. Sales and profits from Chuy's restaurants are included within the Other Business segment from the date of acquisition forward. Q4 SalesQ4 Segment Profit ($ in millions)2025202420252024 Consolidated Darden$3,271.7$2,957.3 Olive Garden$1,381.0$1,277.5$328.4$291.4 LongHorn Steakhouse$833.8$762.7$167.8$147.2 Fine Dining$334.6$327.1$62.9$64.6 Other Business$722.3$590.0$126.3$102.5Annual SalesAnnual Segment Profit ($ in millions)2025202420252024 Consolidated Darden$12,076.7$11,390.0 Olive Garden$5,212.9$5,067.0$1,163.9$1,117.4 LongHorn Steakhouse$3,025.5$2,806.2$582.7$516.8 Fine Dining$1,304.8$1,291.5$242.5$245.0 Other Business$2,533.5$2,225.3$397.4$340.3 Dividend DeclaredDarden's Board of Directors declared a quarterly cash dividend of $1.50 per share on the Company's outstanding common stock, a 7.1% increase from third quarter fiscal 2025. The dividend is payable on August 1, 2025 to shareholders of record at the close of business on July 10, 2025. Share Repurchase ProgramDuring the quarter, the Company repurchased approximately 0.2 million shares of its common stock for a total of $51 million. In addition, on Wednesday, June 18, 2025, Darden's Board of Directors authorized a new share repurchase program under which the Company may repurchase up to $1 billion of its outstanding common stock. This repurchase program does not have an expiration and replaces the previously existing share repurchase authorization. "Our long-term framework calls for 10-15% Total Shareholder Return over time," said Darden CFO Raj Vennam. "Over our 30-year history as a public company, Darden has achieved an annualized total shareholder return of 10% or greater over any 10 fiscal-year period. This level of performance reflects the strength of our operating model and the durability of the cash flows it generates." Fiscal 2026 Financial OutlookBelow is the full year financial outlook for fiscal 2026, which includes a 53rd week. This outlook includes the impact of the additional week. We will provide more details during our investor conference call scheduled for this morning at 8:30 am ET. Total sales growth of 7% to 8%, including approximately 2% growth related to the 53rd week Same-restaurant sales4 growth of 2% to 3.5% New restaurant openings of 60 to 65 Total capital spending of $700 to $750 million Total inflation of 2.5% to 3.0% An effective tax rate of approximately 13% Diluted net earnings per share from continuing operations of $10.50 to $10.70, including: Approximately $0.20 related to the addition of the 53rd week Approximately 117 million weighted average diluted shares outstanding 4 Annual same-restaurant sales is a 52-week metric and excludes the impact of Chuy's, which will not have been owned and operated by Darden for a 16-month period prior to the beginning of Fiscal 2026, as well as any additional locations not expected to be operated by Darden for the entirety of the fiscal year. Annual Meeting of ShareholdersDarden will hold its Annual Meeting of Shareholders on September 17, 2025. The meeting will be held in a virtual format only. The record date for shareholders to vote in the Annual Meeting is July 23, 2025. Investor Conference CallThe Company will host a conference call and slide presentation on Friday, June 20, 2025 at 8:30 am ET to review its recent financial performance. To listen to the call live, please go to Please allow extra time prior to the call to visit the site and download any software required to listen to the webcast. Prior to the call, a slide presentation will be posted on the Investor Relations section of our website at: For those who cannot access the Internet, please dial 1-877-407-9219. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. About DardenDarden is a restaurant company featuring a portfolio of differentiated brands that include Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Chuy's, Seasons 52, Eddie V's and Bahama Breeze. For more information, please visit Information About Forward-Looking StatementsForward-looking statements in this communication regarding our expected earnings performance and all other statements that are not historical facts, including without limitation statements concerning our future economic performance, are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements speak only as of the date on which such statements are first made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. We wish to caution investors not to place undue reliance on any such forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to materially differ from those anticipated in the statements. The most significant of these uncertainties are described in Darden's Form 10-K, Form 10-Q and Form 8-K reports. These risks and uncertainties include: a failure to address cost pressures and a failure to effectively deliver cost management activities, economic factors and their impacts on the restaurant industry and general macroeconomic factors including unemployment, energy prices, tariffs and interest rates, the inability to hire, train, reward and retain restaurant team members, a failure to develop and recruit effective leaders, labor and insurance costs, health concerns including food-related pandemics or outbreaks of flu or other viruses, food safety and food-borne illness concerns, technology failures including failure to maintain a secure cyber network, compliance with privacy and data protection laws and risks of failures or breaches of our data protection systems, the inability to successfully complete our integration of Chuy's Holdings operations into our business, risks relating to public policy changes and federal, state and local regulation of our business, intense competition, changing consumer preferences, an inability or failure to manage the accelerated impact of social media, a failure to execute innovative marketing and guest relationship tactics, climate change, adverse weather conditions and natural disasters, long-term and non-cancelable property leases, failure to execute a business continuity plan following a disaster, shortages or interruptions in the delivery of food and other products and services, failure to drive profitable sales growth, a lack of availability of suitable locations for new restaurants, higher-than-anticipated costs to open, close, relocate or remodel restaurants, risks of doing business with franchisees, licensees and vendors in foreign markets, volatility in the market value of derivatives, volatility leading to the inability to hedge equity compensation market exposure, failure to protect our intellectual property, environmental, social and governance risk, including disclosure expectations and the impacts of third party ratings, litigation, unfavorable publicity, disruptions in the financial markets, impairment in the carrying value of our goodwill or other intangible assets, changes in tax laws or unanticipated tax liabilities, failure of our internal controls over financial reporting and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission. Non-GAAP InformationThe information in this press release includes financial information determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"), such as adjusted diluted net earnings per share from continuing operations. The Company's management uses these non-GAAP measures in its analysis of the Company's performance. The Company believes that the presentation of certain non-GAAP measures provides useful supplemental information that is essential to a proper understanding of the operating results of the Company's businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP measures are included in this release. (Analysts) Courtney Aquilla, (407) 245-5054; (Media) Rich Jeffers, (407) 245-4189 Fiscal Q4 Reported to Adjusted Earnings ReconciliationQ4 2025Q4 2024 $ in millions, except per share amounts Earnings Before Income Tax Income Tax Expense Net Earnings Diluted Net Earnings Per ShareEarnings Before Income Tax Income Tax Expense Net Earnings Diluted Net Earnings Per Share Reported Earnings from Continuing Operations $ 336.5 $ 32.5 $ 304.0 $ 2.58$ 360.0 $ 50.0 $ 310.0 $ 2.58 % Change vs Prior Year— %Adjustments:Transaction and integration related costs5 7.0 2.1 4.9 0.047.4 (0.8) 8.2 0.07 Impairment on restaurant disposition6 47.7 11.9 35.8 0.30Restaurant closing costs7 9.2 2.3 6.9 0.06Adjusted Earnings from Continuing Operations $ 400.4 $ 48.8 $ 351.6 $ 2.98$ 367.4 $ 49.2 $ 318.2 $ 2.65 % Change vs Prior Year12.5 % Fiscal YTD Reported to Adjusted Earnings Reconciliation20252024 $ in millions, except per share amounts Earnings Before Income Tax Income Tax Expense Net Earnings Diluted Net Earnings Per ShareEarnings Before Income Tax Income Tax Expense Net Earnings Diluted Net Earnings Per Share Reported Earnings from Continuing Operations $ 1,187.2 $ 136.2 $ 1,051.0 $ 8.88$ 1,175.5 $ 145.0 $ 1,030.5 $ 8.53 % Change vs Prior Year4.1 %Adjustments:Transaction and integration related costs5 44.6 7.9 36.7 0.3151.8 9.7 42.1 0.35 Impairment on restaurant disposition6 47.7 11.9 35.8 0.30Restaurant closing costs7 9.2 2.3 6.9 0.06Adjusted Earnings from Continuing Operations $ 1,288.7 $ 158.3 $ 1,130.4 $ 9.55$ 1,227.3 $ 154.7 $ 1,072.6 $ 8.88 % Change vs Prior Year7.5 % 5 In Fiscal 2025, Chuy's associated costs. In Fiscal 2024, Ruth's Chris associated costs. 6 Fiscal 2025 non-cash asset impairment charges related to 22 underperforming restaurants that were permanently closed during the fourth quarter. 7 Includes cash expenses of approximately $8 million for severance and benefits related to 22 underperforming restaurants that were permanently closed during the fourth quarter. DARDEN RESTAURANTS, INC. NUMBER OF COMPANY-OWNED RESTAURANTS 5/25/25 5/26/24 Olive Garden 935 920 LongHorn Steakhouse 591 575 Cheddar's Scratch Kitchen 181 181 Chuy's 108 — Yard House 88 88 Ruth's Chris 82 80 The Capital Grille 71 66 Seasons 52 43 44 Eddie V's 29 30 Bahama Breeze 28 43 The Capital Burger 3 4 Darden Continuing Operations 2,159 2,031 DARDEN RESTAURANTS, INC. CONSOLIDATED STATEMENTS OF EARNINGS (In millions, except per share data) (Unaudited) Three Months EndedTwelve Months Ended5/25/20255/26/20245/25/20255/26/2024 Sales $ 3,271.7$ 2,957.3$ 12,076.7$ 11,390.0 Costs and expenses:Food and beverage 983.9906.93,657.03,523.9 Restaurant labor 1,022.0926.03,833.13,619.3 Restaurant expenses 517.1462.71,944.01,812.3 Marketing expenses 41.037.3169.9144.5 Pre-opening costs 8.75.024.824.3 General and administrative expenses 133.1102.9520.3479.2 Depreciation and amortization 135.0119.7516.1459.9 Impairments and disposal of assets, net 48.11.449.212.4 Total operating costs and expenses $ 2,888.9$ 2,561.9$ 10,714.4$ 10,075.8 Operating income 382.8395.41,362.31,314.2 Interest, net 46.335.4175.1138.7 Earnings before income taxes 336.5360.01,187.21,175.5 Income tax expense 32.550.0136.2145.0 Earnings from continuing operations $ 304.0$ 310.0$ 1,051.0$ 1,030.5 Losses from discontinued operations, net of tax benefit of $0.1, $0.7, $0.8 and $1.7, respectively (0.2)(1.9)(1.4)(2.9) Net earnings $ 303.8$ 308.1$ 1,049.6$ 1,027.6 Basic net earnings per share:Earnings from continuing operations $ 2.60$ 2.60$ 8.94$ 8.59 Losses from discontinued operations (0.01)(0.02)(0.01)(0.02) Net earnings $ 2.59$ 2.58$ 8.93$ 8.57 Diluted net earnings per share:Earnings from continuing operations $ 2.58$ 2.58$ 8.88$ 8.53 Losses from discontinued operations —(0.01)(0.02)(0.02) Net earnings $ 2.58$ 2.57$ 8.86$ 8.51 Average number of common shares outstanding:Basic 117.1119.2117.5119.9 Diluted 117.9120.1118.4120.8 DARDEN RESTAURANTS, INC. CONSOLIDATED BALANCE SHEETS (In millions) 5/25/20255/26/2024(Unaudited) ASSETSCurrent assets:Cash and cash equivalents $ 240.0$ 194.8 Receivables, net 93.879.1 Inventories 311.6290.5 Prepaid income taxes 135.6121.7 Prepaid expenses and other current assets 156.7136.7 Total current assets $ 937.7$ 822.8 Land, buildings and equipment, net 4,716.04,184.3 Operating lease right-of-use assets 3,555.93,429.3 Goodwill 1,659.41,391.0 Trademarks 1,346.41,148.0 Other assets 371.6347.6 Total assets $ 12,587.0$ 11,323.0 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable $ 439.6$ 399.5 Short-term debt —86.8 Accrued payroll 207.5190.1 Accrued income taxes 4.76.1 Other accrued taxes 83.071.0 Unearned revenues 599.4591.8 Other current liabilities 913.3847.2 Total current liabilities $ 2,247.5$ 2,192.5 Long-term debt 2,128.91,370.4 Deferred income taxes 278.8232.0 Operating lease liabilities - non-current 3,816.93,704.7 Other liabilities 1,803.61,580.9 Total liabilities $ 10,275.7$ 9,080.5 Stockholders' equity:Common stock and surplus $ 2,295.6$ 2,252.4 Retained earnings (deficit) (16.1)(35.5) Accumulated other comprehensive income 31.825.6 Total stockholders' equity $ 2,311.3$ 2,242.5 Total liabilities and stockholders' equity $ 12,587.0$ 11,323.0 DARDEN RESTAURANTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Twelve Months Ended5/25/20255/26/2024 Cash flows—operating activitiesNet earnings $ 1,049.6$ 1,027.6 Losses from discontinued operations, net of tax 1.42.9 Adjustments to reconcile net earnings from continuing operations to cash flows:Depreciation and amortization 516.1459.9 Impairments and disposal of assets, net 49.212.4 Stock-based compensation expense 79.168.5 Change in current assets and liabilities and other, net 11.650.4 Net cash provided by operating activities of continuing operations $ 1,707.0$ 1,621.7 Cash flows—investing activitiesPurchases of land, buildings and equipment (644.6)(601.2) Proceeds from disposal of land, buildings and equipment 2.53.3 Cash used in business acquisitions, net of cash acquired (613.7)(701.1) Purchases of capitalized software and changes in other assets, net (22.5)(25.6) Net cash used in investing activities of continuing operations $ (1,278.3)$ (1,324.6) Cash flows—financing activitiesNet proceeds from issuance of common stock 55.643.6 Dividends paid (658.5)(628.4) Repurchases of common stock (418.2)(453.9) (Repayment of) proceeds from short-term debt, net (86.8)86.8 Proceeds from issuance of long-term debt, net 750.0500.0 Principal payments on finance leases, net (21.0)(19.9) Payments of debt issuance costs (6.9)(11.6) Net cash used in financing activities of continuing operations $ (385.8)$ (483.4) Cash flows—discontinued operationsNet cash used in operating activities of discontinued operations (8.5)(9.8) Net cash used in discontinued operations $ (8.5)$ (9.8) Increase (decrease) in cash, cash equivalents, and restricted cash 34.4(196.1) Cash, cash equivalents, and restricted cash - beginning of period 220.1416.2 Cash, cash equivalents, and restricted cash - end of period $ 254.5$ 220.1Reconciliation of cash, cash equivalents, and restricted cash: 5/25/20255/26/2024 Cash and cash equivalents $ 240.0$ 194.8 Restricted cash included in prepaid expenses and other current assets 14.525.3 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 254.5$ 220.1 View original content: SOURCE Darden Restaurants, Inc.: Financial
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16 hours ago
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Darden Restaurants Stock: Is DRI Outperforming the Consumer Discretionary Sector?
With a market cap of $26.3 billion, Darden Restaurants, Inc. (DRI) is the world's largest full-service restaurant operator, based in Orlando, Florida, with over 2,180 locations across the U.S., Canada, and select international markets. Its diverse brand portfolio includes casual dining favorites like Olive Garden, LongHorn Steakhouse, Cheddar's, Yard House, and Bahama Breeze, alongside upscale chains such as The Capital Grille, Eddie V's, Seasons 52, Ruth's Chris Steak House, and Chuy's. Companies valued at $10 billion or more are generally classified as 'large-cap' stocks, and Darden Restaurants fits this criterion perfectly. The company benefits from strong brand loyalty, consistent same-store sales growth in key segments like LongHorn, and disciplined operational execution that drives solid margins. Additionally, Darden maintains strong shareholder returns through regular dividends and share buybacks, reinforcing investor confidence. Is Palantir Stock Poised to Surge Amidst the Israel-Iran Conflict? 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer OpenAI CEO Sam Altman Says 'We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life' Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. DRI shares are trading 1.9% below their 52-week high of $226.98, which they touched recently on June 17. DRI has increased 18.4% over the past three months, outpacing the broader Consumer Discretionary Select Sector SPDR Fund's (XLY) 8.8% rise during the same time frame. Over the longer term, Darden Restaurants has posted a strong performance, climbing 19.3% year-to-date while XLY has declined 6.2%. Over the past 52 weeks, its shares have advanced 46.6%, notably exceeding XLY's 16.4% gain during the same period, highlighting its relative strength within the consumer discretionary space. Indicating a bullish trend, DRI has been trading above its 50-day moving average since mid-April and over its 200-day moving averages since the end of August last year. On Mar. 20, shares of Darden Restaurants rose over 5% after delivering Q3 results. The company reported adjusted EPS of $2.80, just shy of the Street's estimate of $2.81, while revenue came in at $3.16 billion, slightly below the projected $3.21 billion. Looking ahead, Darden reaffirmed its full-year outlook, guiding for adjusted EPS between $9.45 and $9.52, with revenue expected to reach approximately $12.1 billion. Moreover, Darden Restaurants has outperformed its rival, Starbucks Corporation (SBUX), which has gained 15.1% over the past 52 weeks and 1.1% on a YTD basis. The stock has a consensus rating of 'Moderate Buy' from the 27 analysts covering the stock, and the mean price target of $223.85 implies a marginal premium from the prevailing market prices. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
