Darden Restaurants (NYSE:DRI) Issues FY 2022 Earnings Guidance

Darden Restaurants (NYSE:DRI) issued an update on its FY 2022 earnings guidance on Thursday morning. The company provided EPS guidance of $7.250-$7.600 for the period, compared to the Thomson Reuters consensus EPS estimate of $7.430. The company issued revenue guidance of $9.40 billion-$9.60 billion, compared to the consensus revenue estimate of $9.41 billion.

A number of analysts have recently issued reports on the stock. Raymond James lifted their price objective on shares of Darden Restaurants from $160.00 to $172.50 and gave the stock an outperform rating in a report on Friday, September 24th. Stephens increased their price objective on Darden Restaurants from $170.00 to $180.00 and gave the company an overweight rating in a research report on Friday, September 24th. KeyCorp increased their price target on shares of Darden Restaurants from $165.00 to $180.00 and gave the company an overweight rating in a research report on Friday, September 24th. Wedbush boosted their price objective on shares of Darden Restaurants from $150.00 to $162.00 and gave the stock a neutral rating in a report on Thursday, September 23rd. They noted that the move was a valuation call. Finally, Royal Bank of Canada lifted their target price on shares of Darden Restaurants from $165.00 to $176.00 and gave the stock an outperform rating in a research report on Friday, September 24th. Five research analysts have rated the stock with a hold rating and twenty-two have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of Buy and a consensus price target of $167.13.

Shares of DRI stock traded up $1.15 during midday trading on Thursday, reaching $150.72. 10,273 shares of the stock were exchanged, compared to its average volume of 1,522,122. The firm has a market cap of $19.56 billion, a PE ratio of 31.36, a price-to-earnings-growth ratio of 2.01 and a beta of 1.54. The company has a current ratio of 1.01, a quick ratio of 0.91 and a debt-to-equity ratio of 0.33. The company’s 50 day moving average is $148.70 and its two-hundred day moving average is $144.64. Darden Restaurants has a 1 year low of $89.34 and a 1 year high of $164.28.

Darden Restaurants (NYSE:DRI) last released its earnings results on Wednesday, September 22nd. The restaurant operator reported $1.76 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.65 by $0.11. Darden Restaurants had a net margin of 8.74% and a return on equity of 22.25%. The firm had revenue of $2.31 billion for the quarter, compared to the consensus estimate of $2.24 billion. During the same period in the prior year, the firm earned $0.56 EPS. The company’s revenue was up 51.0% compared to the same quarter last year. As a group, equities analysts expect that Darden Restaurants will post 7.41 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Monday, November 1st. Stockholders of record on Friday, October 8th will be given a $1.10 dividend. The ex-dividend date of this dividend is Thursday, October 7th. This represents a $4.40 dividend on an annualized basis and a dividend yield of 2.92%. Darden Restaurants’s dividend payout ratio is currently 102.09%.

Darden Restaurants announced that its Board of Directors has approved a stock buyback plan on Thursday, September 23rd that permits the company to buyback $750.00 million in outstanding shares. This buyback authorization permits the restaurant operator to purchase up to 3.6% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board believes its stock is undervalued.

In other news, insider Todd Burrowes sold 22,157 shares of the stock in a transaction that occurred on Thursday, July 29th. The shares were sold at an average price of $150.07, for a total value of $3,325,100.99. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, COO Ricardo Cardenas sold 5,326 shares of the company’s stock in a transaction that occurred on Monday, August 2nd. The shares were sold at an average price of $147.05, for a total transaction of $783,188.30. The disclosure for this sale can be found here. Insiders sold 92,293 shares of company stock valued at $14,026,861 over the last ninety days. Corporate insiders own 0.95% of the company’s stock.

Darden Restaurants Company Profile

Darden Restaurants, Inc is a full-service restaurant company, which engages in the provision of restaurant services. It operates through the following segments: Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Business. The Olive Garden segment is the largest full-service dining Italian restaurant operator.

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Earnings History and Estimates for Darden Restaurants (NYSE:DRI)

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