Yahoo Finance Darden (DRI) to Report Q4 Earnings: What's in Store?
Darden Restaurants, Inc. DRI is scheduled to report fourth-quarter fiscal 2024 results on June 20, before the opening bell. In the last reported quarter, DRI earnings missed the Zacks Consensus Estimate by 0.4%.
Q4 Estimates
The Zacks Consensus Estimate for earnings is pegged at $2.62 per share, indicating growth of 1.6% from the prior-year levels. The consensus estimate for revenues is pegged at $2.98 billion, implying an increase of 7.7% from a year ago.
Factors to Note
Darden is expected to have delivered a robust performance in the fourth quarter of fiscal 2024, driven by improvements in its menu offerings, digital initiatives and strong comparable sales. A notable increase in off-premise sales is anticipated to contribute significantly to its overall revenues for the quarter.
The company is expected to have reaped benefits from technological advancements in online ordering. DRI has been benefitting from technological enhancements with reference to online ordering. Given the solid feedback on account of enhanced customer experience and reduced friction, the company expects off-premise sales to improve in the near term.
DRI’s fiscal fourth-quarter results are likely to reflect robust performances of Fine Dining and LongHorn Steakhouse. Our model predicts sales at LongHorn Steakhouse, Fine Dining and Other revenues to increase 0.2%, 79.5% and 5.7% from the year-earlier levels to $713.2 million, $376.6 million and $611.4 million, respectively. We expect Olive Garden revenues to decrease 0.4% from the prior-year actuals to $1,263.6 million.
High costs are likely to have hurt margins in the quarter to be reported. The company remains cautious of price increases in Beef. Our model predicts total operating costs and expenses to rise 7.5% from the year-ago tally to $2,573.1 million.
Darden Restaurants, Inc. Price and EPS Surprise
Darden Restaurants, Inc. price-eps-surprise | Darden Restaurants, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Darden this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
Darden has an Earnings ESP of -0.28% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some stocks worth considering from the Zacks Retail-Wholesale sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Brinker International, Inc. EAT has an Earnings ESP of +6.75% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company's shares have gained 103% in the past year. EAT’s earnings beat estimates in each of the trailing four quarters, the average surprise being 213.4%.
Shake Shack Inc. SHAK has an Earnings ESP of +3.28% and a Zacks Rank #3.
The company’s shares have increased 35.3% in the past year. SHAK’s earnings beat estimates in each of the trailing four quarters, the average surprise being 73%.
Chuy's Holdings, Inc. CHUY currently has an Earnings ESP of +0.87% and a Zacks Rank of 3.
Shares of CHUY have declined 36.7% in the past year. CHUY’s earnings beat estimates in each of the trailing four quarters, the average surprise being 18.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
Brinker International, Inc. (EAT) : Free Stock Analysis Report
Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report
Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
