Darden Restaurants Prepares for Q3 Earnings Report: What to Expect
Darden Restaurants, Inc. (DRI), a key player in the U.S. full-service dining industry, boasts a market capitalization of $22.7 billion. This Orlando-based company operates a wide variety of restaurant brands, such as Olive Garden, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s Prime Seafood, and Capital Burger. Darden is set to reveal its fiscal Q3 2025 results on Thursday, March 20.
Anticipated Earnings and Yearly Outlook
As the earnings report approaches, analysts forecast DRI will show a profit of $2.82 per share, marking a 7.6% increase from $2.62 per share during the same period last year. Recently, the company struggled, consistently missing consensus estimates in three out of its last four quarters, while achieving a surprise beat once.
For the entire fiscal year, projections suggest DRI will post an earnings per share (EPS) of $9.52—up 7.2% from $8.88 in fiscal 2024. Looking further ahead, EPS is expected to increase by 11.8%, hitting approximately $10.64 in fiscal 2026.
Stock Performance Compared to Market Indices
Over the past 52 weeks, DRI stock has struggled, gaining only 18.5% compared to the S&P 500’s 22.6% rise. Additionally, it underperformed the Consumer Discretionary Select Sector SPDR Fund (XLY), which saw a 32.6% increase in the same timeframe.
Recent Growth Catalysts and Analyst Sentiment
On December 19, DRI shares surged by over 14% after the company posted its Q2 results, which included a surprising revenue of $2.9 billion. LongHorn Steakhouse was a significant contributor to this growth, boasting a 7.5% increase in same-restaurant sales—well above expectations, indicating strong consumer interest. Furthermore, Darden raised its full-year revenue outlook to $12.1 billion, demonstrating confidence in its growth trajectory. Despite a slight earnings miss, the positive reception from investors stemmed from strong sales and an optimistic outlook for fiscal 2025.
Analysts’ Ratings and Price Target
Currently, analysts hold a moderately positive view of DRI stock, with an overall “Moderate Buy” rating. Out of 28 analysts covering Darden, 17 recommend a “Strong Buy,” two suggest a “Moderate Buy,” eight advocate for a “Hold,” and one advises a “Moderate Sell.”
As of this writing, DRI trades below the average analyst price target of $200.46.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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