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

Darden Restaurants (NYSE:DRI) updated its FY 2022 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of $7.000-$7.500 for the period, compared to the Thomson Reuters consensus estimate of $7.210. The company issued revenue guidance of $9.20 billion-$9.50 billion, compared to the consensus revenue estimate of $9.22 billion.

NYSE:DRI traded down $1.30 on Thursday, reaching $143.70. The stock had a trading volume of 33,907 shares, compared to its average volume of 1,934,181. The firm has a market cap of $18.73 billion, a P/E ratio of 30.40, a P/E/G ratio of 1.91 and a beta of 1.53. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.01 and a quick ratio of 0.91. Darden Restaurants has a 1-year low of $73.88 and a 1-year high of $150.20. The stock’s fifty day simple moving average is $140.94.

Darden Restaurants (NYSE:DRI) last issued its quarterly earnings data on Wednesday, June 23rd. The restaurant operator reported $2.03 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.80 by $0.23. Darden Restaurants had a return on equity of 22.25% and a net margin of 8.74%. The firm had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.20 billion. During the same quarter in the previous year, the company posted ($1.24) EPS. The business’s revenue for the quarter was up 79.5% compared to the same quarter last year. As a group, equities analysts anticipate that Darden Restaurants will post 7.42 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 2nd. Investors of record on Friday, July 9th will be given a $1.10 dividend. This represents a $4.40 annualized dividend and a yield of 3.06%. The ex-dividend date of this dividend is Thursday, July 8th. This is a boost from Darden Restaurants’s previous quarterly dividend of $0.88. Darden Restaurants’s payout ratio is 102.09%.

Darden Restaurants declared that its Board of Directors has initiated a stock repurchase plan on Thursday, March 25th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the restaurant operator to buy up to 2.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its shares are undervalued.

DRI has been the topic of several analyst reports. Raymond James increased their price objective on shares of Darden Restaurants from $155.00 to $160.00 and gave the company an outperform rating in a report on Monday, March 29th. TheStreet raised Darden Restaurants from a c+ rating to a b- rating in a research note on Thursday, June 24th. BTIG Research reiterated a hold rating on shares of Darden Restaurants in a report on Sunday, June 27th. Credit Suisse Group raised their target price on Darden Restaurants from $141.00 to $160.00 and gave the stock an outperform rating in a report on Friday, March 26th. Finally, Stifel Nicolaus increased their price target on shares of Darden Restaurants from $140.00 to $155.00 and gave the company a hold rating in a research report on Thursday, June 24th. Six investment analysts have rated the stock with a hold rating and twenty-two have given a buy rating to the company. The stock presently has an average rating of Buy and an average price target of $154.96.

In other Darden Restaurants news, CEO Eugene I. Lee, Jr. sold 40,000 shares of the firm’s stock in a transaction on Tuesday, May 4th. The stock was sold at an average price of $142.88, for a total value of $5,715,200.00. Following the sale, the chief executive officer now owns 268,707 shares of the company’s stock, valued at approximately $38,392,856.16. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Todd Burrowes sold 4,500 shares of the business’s stock in a transaction on Wednesday, July 14th. The stock was sold at an average price of $150.02, for a total value of $675,090.00. The disclosure for this sale can be found here. Insiders sold 109,781 shares of company stock worth $16,152,153 in the last 90 days. 1.00% of the stock is owned by company insiders.

Darden Restaurants Company Profile

Darden Restaurants, Inc, through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 31, 2020, it owned and operated approximately 1,804 restaurants, which included 868 under the Olive Garden, 522 under the LongHorn Steakhouse, 165 under the Cheddar's Scratch Kitchen, 81 under the Yard House, 60 under The Capital Grille, 44 under the Seasons 52, 41 under the Bahama Breeze, and 23 under the Eddie V's Prime Seafood brands.

Further Reading: Why do commodities matter?

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

Receive News & Ratings for Darden Restaurants Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Darden Restaurants and related companies with MarketBeat.com's FREE daily email newsletter.