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Darden Restaurants Analysts Cut Their Forecasts After Q3 Results

Published 22/03/2024, 18:58
© Reuters. Darden Restaurants Analysts Cut Their Forecasts After Q3 Results

Benzinga - by Avi Kapoor, Benzinga Staff Writer.

Darden Restaurants Inc (NYSE: DRI) reported mixed results for its third quarter on Thursday.

Darden Restaurants reported third-quarter FY24 sales growth of 6.8% year-on-year to $2.975 billion, missing the analyst consensus estimate of $3.025 billion. Darden clocked an operating margin of 13%, and the operating income rose 10.7% Y/Y to $387.4 million. Adjusted EPS of $2.62 was in line with the consensus estimate, according to data from Benzinga Pro.

Darden currently sees FY24 adjusted EPS from continuing operations of $8.80-$8.90 (estimate $8.86), excluding approximately $0.35, after-tax, of Ruth’s Chris transaction and integration related costs. The company previously expected adjusted EPS from continuing operations of $8.75-$8.90, excluding the $0.37 costs.

The company sees FY24 total sales of $11.4 billion (prior view $11.5 billion) against an estimate of $11.506 billion. Darden expects FY24 same-restaurant sales growth of 1.5%-2% (previous outlook 2.5%-3.0%).

Darden shares rose 0.9% to trade at $164.75 on Friday.

These analysts made changes to their price targets on Darden following earnings announcement.

  • Citigroup cut the price target on Darden from $200 to $192. Citigroup analyst Jon Tower maintained a Buy rating.
  • JP Morgan slashed the price target on Darden from $180 to $176. JP Morgan analyst John Ivankoe maintained an Overweight rating.
  • Morgan Stanley cut the price target on Darden from $184 to $180. Morgan Stanley analyst Brian Nowak maintained an Overweight rating.
  • Wedbush cut the price target on Darden from $187 to $181. Wedbush analyst Nick Setyan maintained an Outperform rating.
  • Oppenheimer slashed the price target on Darden from $186 to $182. Oppenheimer analyst Brian Bittner maintained an Outperform rating.
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Latest Ratings for DRI

Dec 2021StifelUpgradesHoldBuy
Dec 2021Stephens & Co.MaintainsOverweight
Dec 2021MKM PartnersMaintainsBuy

View the Latest Analyst Ratings

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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