What to Expect from Darden Restaurants's Earnings

Darden Restaurants DRI will release its quarterly earnings report on Friday, 2025-06-20. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Darden Restaurants to report an earnings per share (EPS) of $2.96.

Investors in Darden Restaurants are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Past Earnings Performance

During the last quarter, the company reported an EPS beat by $0.01, leading to a 0.46% increase in the share price on the subsequent day.

Here's a look at Darden Restaurants's past performance and the resulting price change:

Performance of Darden Restaurants Shares

Shares of Darden Restaurants were trading at $224.78 as of June 17. Over the last 52-week period, shares are up 45.32%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Insights Shared by Analysts on Darden Restaurants

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Darden Restaurants.

A total of 25 analyst ratings have been received for Darden Restaurants, with the consensus rating being Neutral. The average one-year price target stands at $220.84, suggesting a potential 1.75% downside.

Understanding Analyst Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Texas Roadhouse, Aramark and Dutch Bros, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Texas Roadhouse, with an average 1-year price target of $185.73, suggesting a potential 17.37% downside.
• Analysts currently favor an Buy trajectory for Aramark, with an average 1-year price target of $43.25, suggesting a potential 80.76% downside.
• Analysts currently favor an Outperform trajectory for Dutch Bros, with an average 1-year price target of $78.21, suggesting a potential 65.21% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Texas Roadhouse, Aramark and Dutch Bros, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Darden Restaurants ranks in the middle for revenue growth among its peers. It is at the top for gross profit. For return on equity, it is also in the middle.

Discovering Darden Restaurants: A Closer Look

Darden Restaurants is the largest restaurant operator in the US full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 11 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, The Capital Burger, and most recently, Chuy's. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the US.

Darden Restaurants: Delving into Financials

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Darden Restaurants's remarkable performance in 3 months is evident. As of 28 February, 2025, the company achieved an impressive revenue growth rate of 6.16%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Darden Restaurants's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.24%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 15.13%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Darden Restaurants's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.58% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Darden Restaurants's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.76.

To track all earnings releases for Darden Restaurants visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.