- Darden projects 2025 sales between $11.8 billion and $11.9 billion, falling short of the $11.93 billion estimate.
- The fourth quarter sales reached $2.96 billion, a 6.8% increase year-over-year, but slightly below the $2.97 billion estimate.
- Earnings per share (EPS) from continuing operations stood at $2.58 for the fourth quarter.
- Adjusted EPS from continuing operations was $2.65, surpassing the $2.62 estimate.
- Operating income grew by 5.6% year-over-year to $395.4 million, exceeding the $391.7 million estimate.
- Darden’s President & CEO Rick Cardenas highlighted a strong year, crediting discipline, basic efficiency, and controllable factors for their performance.
- Despite weakening conditions in the latter half of the year, Darden exceeded the high end of its EPS range provided at the start of the fiscal year.
- Analyst recommendations include 20 buys and 11 holds, with zero sell ratings.
Darden Restaurants on Smartkarma
Analyst coverage on Darden Restaurants, as reported on Smartkarma by Baptista Research, highlights the mixed results delivered by Darden in the previous quarter. Revenues fell below the analyst consensus, despite the opening of 17 new restaurants during the quarter, bringing the total to 27 restaurants across 16 states year-to-date. Looking forward, Darden is focused on implementing operational changes such as discontinuing third-party delivery services, scaling back lunch operations, and shutting down most restaurants on Christmas Day.
A look at Darden Restaurants Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
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
Investment analysts are cautiously optimistic about the long-term outlook for Darden Restaurants, the company behind popular full-service seafood and Italian dining establishments across North America. Smartkarma Smart Scores indicate a solid performance in key areas, with a particularly strong rating in growth, showing potential for expanding its business in the future. Furthermore, a robust dividend score reflects the company’s commitment to rewarding shareholders. However, Darden Restaurants scores lower in value and resilience metrics, suggesting potential risks in terms of financials and market challenges.
Darden Restaurants, Inc. operates a diverse portfolio of well-known restaurant brands, offering a mix of seafood and Italian cuisine for customers. Despite facing some uncertainties in terms of value and resilience, the company’s strong performance in growth and dividends indicates a promising future trajectory. With a focus on maintaining momentum in the industry, Darden Restaurants aims to leverage its brand strength and customer loyalty to drive further success in the competitive restaurant landscape.
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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