Why LongHorn Steakhouse Owner Darden Restaurants Shares Are Surging Today
Portfolio Pulse from Lekha Gupta
Darden Restaurants, Inc. (NYSE:DRI) shares surged after reporting better-than-expected Q4 FY24 adjusted EPS and increasing its quarterly dividend. Despite missing sales estimates, the company saw growth from new restaurant additions and maintained strong cash flow. Darden also provided a positive FY25 outlook.
June 20, 2024 | 4:13 pm
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POSITIVE IMPACT
First Trust Dorsey Wright Momentum & Dividend ETF (NASDAQ:DDIV) may experience a positive impact due to Darden Restaurants' increased dividend and strong Q4 FY24 performance, as Darden is a component of the ETF.
Darden Restaurants' increased dividend and strong performance are likely to positively impact DDIV, given Darden's inclusion in the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Darden Restaurants reported better-than-expected Q4 FY24 adjusted EPS and increased its quarterly dividend, driving a 2.25% rise in share price. Despite missing sales estimates, the company saw growth from new restaurant additions and maintained strong cash flow. The FY25 outlook is positive.
The better-than-expected EPS and increased dividend are strong positive signals for investors. The addition of new restaurants and strong cash flow further support the positive sentiment. The FY25 outlook also indicates continued growth.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
AdvisorShares Restaurant ETF (NYSE:EATZ) may see a positive impact due to Darden Restaurants' strong Q4 FY24 performance and positive FY25 outlook, as Darden is a significant component of the ETF.
Darden Restaurants' strong performance and positive outlook are likely to positively impact EATZ, given Darden's significant presence in the ETF.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50