Earnings Alerts

Darden Restaurants (DRI) Earnings: Q2 Sales Align with Estimates, Adjusted EPS Surpasses Expectations

By December 19, 2024 No Comments
  • Sales for the second quarter increased by 6% year-on-year, reaching $2.89 billion, slightly above the estimated $2.86 billion.
  • Earnings per share (EPS) from continuing operations stood at $1.82.
  • Adjusted EPS from continuing operations was reported at $2.03, slightly higher than the estimated $2.02.
  • Comparable sales grew by 2.4% compared to the previous year’s 2.8%, surpassing the estimated growth of 1.45%.
  • Operating income increased by 4.9% year-on-year to $292.1 million, though it fell short of the $315.7 million estimate.
  • Analyst ratings on the stock include 19 buys, 11 holds, and 3 sells.

Darden Restaurants on Smartkarma



Analysts on Smartkarma are closely monitoring Darden Restaurants, with Baptista Research being one of the prominent voices. In their report titled “Darden Restaurants Inc.: Expanded Delivery Partnerships & Menu Enhancements Can Catalyze Growth? – Major Drivers,” Baptista Research delves into Darden Restaurants‘ latest financial performance in the first quarter of fiscal year 2025. The report highlights the mixed results presented by the company, reflecting both challenges and operational advancements in the competitive dining sector. Despite facing industry headwinds and falling slightly below expectations for the quarter, Darden’s strategic initiatives and strong brand lineup are noted to bolster its market standing. Baptista Research aims to assess the various factors that may impact the company’s stock price in the near term, carrying out an independent valuation based on a Discounted Cash Flow (DCF) methodology.



A look at Darden Restaurants Smart Scores

FactorScoreMagnitude
Value2
Dividend4
Growth4
Resilience2
Momentum4
OVERALL SMART SCORE3.2

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

Analysts utilizing Smartkarma’s Smart Scores have assessed Darden Restaurants, Inc.’s long-term outlook based on key factors. With strong scores in Dividend and Growth, the company is positioned well for stability and expansion. The high score in Momentum suggests promising performance in the near future, reflecting positive market sentiment towards the company’s operations. In contrast, lower scores in Value and Resilience indicate areas where Darden Restaurants may need to focus on improving to enhance its overall financial health in the long run.

Darden Restaurants, Inc. owns and operates a range of full-service restaurants across North America, specializing in seafood and Italian cuisine under various brand names. Smart Scores highlighting the company’s performance in Value, Dividend, Growth, Resilience, and Momentum provide insights for investors looking to understand the company’s overall outlook and potential for sustainable growth in the competitive restaurant industry.


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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