Darden Stumbles on Sales, But Analysts Stay Optimistic On Operational Execution: Here's Why
Portfolio Pulse from Lekha Gupta
Darden Restaurants, Inc. (NYSE:DRI) reported Q4 FY24 earnings with sales growth of 6.8% Y/Y to $2.957 billion, missing the consensus estimate of $2.975 billion, but adjusted EPS of $2.65 topped the consensus of $2.62. Analysts remain optimistic, reiterating their ratings and price targets. Darden's FY25 guidance indicates slightly softer sales but better-than-expected profitability. DRI shares are up 1.16% at $155.72.
June 20, 2024 | 5:25 pm
News sentiment analysis
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POSITIVE IMPACT
First Trust Dorsey Wright Momentum & Dividend ETF (NASDAQ:DDIV) includes Darden Restaurants in its portfolio. The positive analyst sentiment and better-than-expected EPS for Darden could positively impact DDIV in the short term.
Since DDIV includes Darden Restaurants in its portfolio, the positive news and analyst sentiment around Darden's earnings could lead to a short-term positive impact on DDIV.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Darden Restaurants reported Q4 FY24 earnings with sales growth of 6.8% Y/Y to $2.957 billion, missing the consensus estimate of $2.975 billion, but adjusted EPS of $2.65 topped the consensus of $2.62. Analysts remain optimistic, reiterating their ratings and price targets. FY25 guidance indicates slightly softer sales but better-than-expected profitability.
Despite missing sales estimates, Darden's better-than-expected EPS and positive analyst sentiment suggest a favorable short-term impact on the stock price. The reiterated ratings and price targets indicate continued confidence in the company's operational execution.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
AdvisorShares Restaurant ETF (NYSE:EATZ) provides exposure to Darden Restaurants. The positive analyst sentiment and better-than-expected EPS for Darden could positively impact EATZ in the short term.
Given that EATZ provides exposure to Darden Restaurants, the positive news and analyst sentiment around Darden's earnings could lead to a short-term positive impact on EATZ.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50