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Darden (DRI) to Report Q4 Earnings: What's in the Cards?
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Darden Restaurants, Inc. (DRI - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Jun 22 before the opening bell. In the last reported quarter, DRI delivered an earnings surprise of 4.5%.
Q4 Estimates
The Zacks Consensus Estimate for earnings is pegged at $2.53 per share, indicating growth of 13% year over year. The consensus estimate for revenues is pegged at $2.77 billion, suggesting an increase of 6.3% from the year-ago quarter.
Factors to Note
Darden’s fiscal fourth-quarter performance is likely to have benefited from improvement in same-restaurant sales across its brands, business model enhancements and menu simplifications. Robust off-premise sales are likely to have aided the company’s top line in the quarter to be reported.
DRI’s fiscal fourth-quarter results are likely to reflect the robust performance of Olive Garden, Fine Dining and LongHorn Steakhouse. Our mode predicts sales at Olive Garden, Fine Dining and LongHorn Steakhouse to increase 7.2%, 6.9% and 11.8% year over year, respectively. However, sales at Other business is pegged at $519.6 million, indicating a decline of 5.8% from the prior-year quarter.
Despite solid cost control, higher labor expenses due to increased wages may have weighed on profits in the quarter to be reported. The company is also apprehensive that inflationary costs might persist for the remainder of the year. For fiscal 2023, management expects total inflation in the 7-7.5% band and commodities inflation to be between 9.5% and 10%.
Our proven model doesn’t conclusively predict an earnings beat for Darden this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Darden has an Earnings ESP of -0.25% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported.
Shares of Jack in the Box have gained 51.6% in the past year. JACK’s earnings surpassed the consensus estimate in two of the trailing four quarters and missed twice, the average surprise being 7.9%.
Starbucks Corporation (SBUX - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #3.
Shares of Starbucks have improved 41.7% in the past year. SBUX’s earnings surpassed the consensus estimate in three of the trailing four quarters and missed once, the average surprise being 8.3%.
Five Below, Inc. (FIVE - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #3.
Shares of Five Below have surged 61.1% in the past year. FIVE’s earnings surpassed the consensus estimate in three of the trailing four quarters and missed once, the average surprise being 27.9%.
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Darden (DRI) to Report Q4 Earnings: What's in the Cards?
Darden Restaurants, Inc. (DRI - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Jun 22 before the opening bell. In the last reported quarter, DRI delivered an earnings surprise of 4.5%.
Q4 Estimates
The Zacks Consensus Estimate for earnings is pegged at $2.53 per share, indicating growth of 13% year over year. The consensus estimate for revenues is pegged at $2.77 billion, suggesting an increase of 6.3% from the year-ago quarter.
Factors to Note
Darden’s fiscal fourth-quarter performance is likely to have benefited from improvement in same-restaurant sales across its brands, business model enhancements and menu simplifications. Robust off-premise sales are likely to have aided the company’s top line in the quarter to be reported.
DRI’s fiscal fourth-quarter results are likely to reflect the robust performance of Olive Garden, Fine Dining and LongHorn Steakhouse. Our mode predicts sales at Olive Garden, Fine Dining and LongHorn Steakhouse to increase 7.2%, 6.9% and 11.8% year over year, respectively. However, sales at Other business is pegged at $519.6 million, indicating a decline of 5.8% from the prior-year quarter.
Despite solid cost control, higher labor expenses due to increased wages may have weighed on profits in the quarter to be reported. The company is also apprehensive that inflationary costs might persist for the remainder of the year. For fiscal 2023, management expects total inflation in the 7-7.5% band and commodities inflation to be between 9.5% and 10%.
Darden Restaurants, Inc. Price and EPS Surprise
Darden Restaurants, Inc. price-eps-surprise | Darden Restaurants, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Darden this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Darden has an Earnings ESP of -0.25% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +0.26% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Jack in the Box have gained 51.6% in the past year. JACK’s earnings surpassed the consensus estimate in two of the trailing four quarters and missed twice, the average surprise being 7.9%.
Starbucks Corporation (SBUX - Free Report) has an Earnings ESP of +1.22% and a Zacks Rank #3.
Shares of Starbucks have improved 41.7% in the past year. SBUX’s earnings surpassed the consensus estimate in three of the trailing four quarters and missed once, the average surprise being 8.3%.
Five Below, Inc. (FIVE - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #3.
Shares of Five Below have surged 61.1% in the past year. FIVE’s earnings surpassed the consensus estimate in three of the trailing four quarters and missed once, the average surprise being 27.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.