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Factors Setting the Tone for Darden's (DRI) Q3 Earnings
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Darden Restaurants, Inc. (DRI - Free Report) is scheduled to report third-quarter fiscal 2021 results on Mar 25, before the opening bell. In the last-reported quarter, the company delivered an earnings surprise of 5.7%.
Q3 Estimates
The Zacks Consensus Estimate for the fiscal third-quarter earnings is pegged at 71 cents per share, indicating a decline of 62.3% from earnings of $1.9 reported in the year-ago quarter. The consensus mark for revenues stands at $1.61 billion, suggesting a slump of 31.4% from the year-ago figure.
Factors to Note
Dismal same-restaurant sales and traffic might have negatively impacted the company’s fiscal third-quarter performance. For the week ended Nov 8, Nov 15, Nov 22, Nov 29, Dec 6 and Dec 13, comps at Darden declined 23.4%, 23.3%, 29.1%, 34%, 33.4% and 36.9%, respectively. Meanwhile, comps at Olive Garden for the week ended Nov 8, Nov 15, Nov 22, Nov 29, Dec 6 and Dec 13 decreased 21.9%, 22.5%, 27.3%, 34.9%, 31.1% and 32,6%, respectively. Moreover, comps at LongHorn Steakhouse were down 12%, 12.1%, 18.5%, 22.9%, 19.5% and 23.3%, for the week ended Nov 8, Nov 15, Nov 22, Nov 29, Dec 6 and Dec 13, respectively.
Meanwhile, the Zacks Consensus Estimate for sales at Olive Garden, Fine Dining, and LongHorn Steakhouse is pegged at $849 million, $109 million and $409 million, indicating year-over-year decline of 17.1%, 42% and 20%, respectively. Moreover, the same for Other business stands at $301 million, suggesting a decrease of 35.4% from the prior-year quarter.
Nonetheless, increased focus on sales-building initiatives, technology-driven moves, menu modifications, and streamlining of order pickup process and payment methods are likely to have contributed to the top line in the to-be-reported quarter.
Our proven model predicts 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.
Earnings ESP: Darden has an Earnings ESP of +2.70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Yum! Brands, Inc. (YUM - Free Report) reported strong fourth-quarter 2020 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Both the metrics also improved year over year. The company’s adjusted earnings of $1.15 beat the Zacks Consensus Estimate of 99 cents. In the prior-year quarter, the company had reported adjusted earnings of $1.00. Quarterly revenues of $1,743 million outpaced the consensus estimate of $1,731 million. The top line also increased 3% year over year. The upside can be attributed to increase in company sales.
McDonald's Corporation (MCD - Free Report) reported weak fourth-quarter 2020 results, with earnings and revenues missing the Zacks Consensus Estimate. The company reported adjusted earnings of $1.70 per share, which fell short of the Zacks Consensus Estimate of $1.75. Moreover, the bottom line declined 14% year over year. Quarterly revenues of $5,313.8 million lagged the Zacks Consensus Estimate of $5,320 million. Moreover, the top line declined 2% year over year. The slump was primarily due to the coronavirus pandemic.
Starbucks Corporation (SBUX - Free Report) reported mixed first-quarter fiscal 2021 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company reported adjusted earnings per share of 61 cents, which beat the Zacks Consensus Estimate of 55 cents. In the prior-year quarter, the company had reported adjusted EPS of 79 cents. Meanwhile, quarterly revenues of $6,749.4 million missed the Zacks Consensus Estimate of $6,873 million. Moreover, the top line fell 4.9% from the year-ago quarter’s levels. The downside was due to dismal global retail and comparable sales, and decline in store traffic.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Factors Setting the Tone for Darden's (DRI) Q3 Earnings
Darden Restaurants, Inc. (DRI - Free Report) is scheduled to report third-quarter fiscal 2021 results on Mar 25, before the opening bell. In the last-reported quarter, the company delivered an earnings surprise of 5.7%.
Q3 Estimates
The Zacks Consensus Estimate for the fiscal third-quarter earnings is pegged at 71 cents per share, indicating a decline of 62.3% from earnings of $1.9 reported in the year-ago quarter. The consensus mark for revenues stands at $1.61 billion, suggesting a slump of 31.4% from the year-ago figure.
Factors to Note
Dismal same-restaurant sales and traffic might have negatively impacted the company’s fiscal third-quarter performance. For the week ended Nov 8, Nov 15, Nov 22, Nov 29, Dec 6 and Dec 13, comps at Darden declined 23.4%, 23.3%, 29.1%, 34%, 33.4% and 36.9%, respectively. Meanwhile, comps at Olive Garden for the week ended Nov 8, Nov 15, Nov 22, Nov 29, Dec 6 and Dec 13 decreased 21.9%, 22.5%, 27.3%, 34.9%, 31.1% and 32,6%, respectively. Moreover, comps at LongHorn Steakhouse were down 12%, 12.1%, 18.5%, 22.9%, 19.5% and 23.3%, for the week ended Nov 8, Nov 15, Nov 22, Nov 29, Dec 6 and Dec 13, respectively.
Meanwhile, the Zacks Consensus Estimate for sales at Olive Garden, Fine Dining, and LongHorn Steakhouse is pegged at $849 million, $109 million and $409 million, indicating year-over-year decline of 17.1%, 42% and 20%, respectively. Moreover, the same for Other business stands at $301 million, suggesting a decrease of 35.4% from the prior-year quarter.
Nonetheless, increased focus on sales-building initiatives, technology-driven moves, menu modifications, and streamlining of order pickup process and payment methods are likely to have contributed to the top line in the to-be-reported quarter.
Darden Restaurants, Inc. Price and EPS Surprise
Darden Restaurants, Inc. price-eps-surprise | Darden Restaurants, Inc. Quote
What Our Model Says
Our proven model predicts 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.
Earnings ESP: Darden has an Earnings ESP of +2.70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Yum! Brands, Inc. (YUM - Free Report) reported strong fourth-quarter 2020 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Both the metrics also improved year over year. The company’s adjusted earnings of $1.15 beat the Zacks Consensus Estimate of 99 cents. In the prior-year quarter, the company had reported adjusted earnings of $1.00. Quarterly revenues of $1,743 million outpaced the consensus estimate of $1,731 million. The top line also increased 3% year over year. The upside can be attributed to increase in company sales.
McDonald's Corporation (MCD - Free Report) reported weak fourth-quarter 2020 results, with earnings and revenues missing the Zacks Consensus Estimate. The company reported adjusted earnings of $1.70 per share, which fell short of the Zacks Consensus Estimate of $1.75. Moreover, the bottom line declined 14% year over year. Quarterly revenues of $5,313.8 million lagged the Zacks Consensus Estimate of $5,320 million. Moreover, the top line declined 2% year over year. The slump was primarily due to the coronavirus pandemic.
Starbucks Corporation (SBUX - Free Report) reported mixed first-quarter fiscal 2021 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company reported adjusted earnings per share of 61 cents, which beat the Zacks Consensus Estimate of 55 cents. In the prior-year quarter, the company had reported adjusted EPS of 79 cents. Meanwhile, quarterly revenues of $6,749.4 million missed the Zacks Consensus Estimate of $6,873 million. Moreover, the top line fell 4.9% from the year-ago quarter’s levels. The downside was due to dismal global retail and comparable sales, and decline in store traffic.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>