We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Darden (DRI) to Report Q2 Earnings: What's in the Cards?
Read MoreHide Full Article
Darden Restaurants, Inc. (DRI - Free Report) is scheduled to report second-quarter fiscal 2022 results on Dec 17, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 8%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the fiscal second-quarter earnings is pegged at $1.43 per share, indicating an improvement of 93.2% from 74 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $2,224 million, suggesting a 34.3% increase from the year-ago quarter’s figure.
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Darden’s fiscal second-quarter performance is likely to have benefited from menu modifications, unit-expansion efforts and increased dining room capacity. This, along with streamlining of order pick-up process and payment methods, technological implementations (to reduce friction) and Curbside I'm Here experience update, is likely to have benefitted the company in the to-be-reported quarter.
Solid segmental performance is likely to have supported the company’s performance in the fiscal second quarter. The Zacks Consensus Estimate for sales at Olive Garden, Fine Dining, and LongHorn Steakhouse is pegged at $1,027 million, $172 million and $557 million, calling for year-over-year growth of 23.7%, 59.3% and 36.9%, respectively. The consensus mark for Other business is at $451 million, suggesting an increase of 44.6% from the prior-year quarter’s levels.
Solid contributions from the To-Go platform on account of new customer additions, simplified guest experience and strong execution (across the dining room and off-premise) are likely to get reflected in the fiscal second quarter top line.
However, elevated wage pressures and commodities inflation are likely to have hurt margins in the fiscal second quarter. This, along with dismal footfall on account of the COVID-19-related restrictions, is expected to have affected the company’s performance in the to-be-reported quarter.
What Our Model Says
Our proven model does not 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. But that's not the case here.
Earnings ESP: Darden has an Earnings ESP of -0.57%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Papa John’s International, Inc. (PZZA - Free Report) reported robust third-quarter fiscal 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. During the fiscal third quarter, the Zacks Rank #2 company reported adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 69 cents by 20.3%. The bottom line increased 137.1% from 35 cents in the prior-year quarter. Quarterly revenues of $512.8 million beat the consensus mark of $501 million by 2.3%. The top line increased 8.4% on a year-over-year basis.
Papa John’s has been benefiting from solid comparable sales in North America, driven by strong customer retention and innovation strategies. PZZA witnessed a rise in company-owned restaurant revenues, franchise royalties and commissary sales. International revenues gained from higher franchise royalties and unit growth.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported dismal third-quarter fiscal 2021 results, with earnings and revenues missing the Zacks Consensus Estimate. Adjusted earnings per share (EPS) was 65 cents, lagging the Zacks Consensus Estimate of 70 cents. In the prior-year quarter, the company had reported an adjusted loss of 33 cents per share. The downside was primarily due to a rise in labor and other operating expenses.
Cheesecake Factory gained from a solid off-premise sales growth. Quarter-to-date (through Nov 2), the off-premise model contributed 28% to total sales. Cheesecake Factory carries a Zacks Rank #3.
YUM! Brands, Inc. (YUM - Free Report) reported strong third-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both the metrics improved year over year. During third-quarter 2021, the company’s adjusted earnings of $1.22 beat the Zacks Consensus Estimate of $1.06. In the prior-year quarter, the company had reported adjusted earnings of $1.01. Quarterly revenues of $1,606 million outpaced the consensus mark of $1,584 million. The top line rose 11% year over year.
YUM! Brands’ results benefited from strong digital sales, robust unit development and a diverse global business model. The company strengthened its digital capabilities with the acquisition of Dragontail, which provides AI-based integrated kitchen order management and delivery technologies. The initiative paves the path for strengthening store operations and enhancing customer experience. During the third quarter, it reported digital sales of more than $5 billion. YUM! Brands’ carries a Zacks Rank #3.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Darden (DRI) to Report Q2 Earnings: What's in the Cards?
Darden Restaurants, Inc. (DRI - Free Report) is scheduled to report second-quarter fiscal 2022 results on Dec 17, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 8%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the fiscal second-quarter earnings is pegged at $1.43 per share, indicating an improvement of 93.2% from 74 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $2,224 million, suggesting a 34.3% increase from the year-ago quarter’s figure.
Darden Restaurants, Inc. Price and EPS Surprise
Darden Restaurants, Inc. price-eps-surprise | Darden Restaurants, Inc. Quote
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Darden’s fiscal second-quarter performance is likely to have benefited from menu modifications, unit-expansion efforts and increased dining room capacity. This, along with streamlining of order pick-up process and payment methods, technological implementations (to reduce friction) and Curbside I'm Here experience update, is likely to have benefitted the company in the to-be-reported quarter.
Solid segmental performance is likely to have supported the company’s performance in the fiscal second quarter. The Zacks Consensus Estimate for sales at Olive Garden, Fine Dining, and LongHorn Steakhouse is pegged at $1,027 million, $172 million and $557 million, calling for year-over-year growth of 23.7%, 59.3% and 36.9%, respectively. The consensus mark for Other business is at $451 million, suggesting an increase of 44.6% from the prior-year quarter’s levels.
Solid contributions from the To-Go platform on account of new customer additions, simplified guest experience and strong execution (across the dining room and off-premise) are likely to get reflected in the fiscal second quarter top line.
However, elevated wage pressures and commodities inflation are likely to have hurt margins in the fiscal second quarter. This, along with dismal footfall on account of the COVID-19-related restrictions, is expected to have affected the company’s performance in the to-be-reported quarter.
What Our Model Says
Our proven model does not 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. But that's not the case here.
Earnings ESP: Darden has an Earnings ESP of -0.57%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Papa John’s International, Inc. (PZZA - Free Report) reported robust third-quarter fiscal 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. During the fiscal third quarter, the Zacks Rank #2 company reported adjusted earnings of 83 cents per share, which surpassed the Zacks Consensus Estimate of 69 cents by 20.3%. The bottom line increased 137.1% from 35 cents in the prior-year quarter. Quarterly revenues of $512.8 million beat the consensus mark of $501 million by 2.3%. The top line increased 8.4% on a year-over-year basis.
Papa John’s has been benefiting from solid comparable sales in North America, driven by strong customer retention and innovation strategies. PZZA witnessed a rise in company-owned restaurant revenues, franchise royalties and commissary sales. International revenues gained from higher franchise royalties and unit growth.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported dismal third-quarter fiscal 2021 results, with earnings and revenues missing the Zacks Consensus Estimate. Adjusted earnings per share (EPS) was 65 cents, lagging the Zacks Consensus Estimate of 70 cents. In the prior-year quarter, the company had reported an adjusted loss of 33 cents per share. The downside was primarily due to a rise in labor and other operating expenses.
Cheesecake Factory gained from a solid off-premise sales growth. Quarter-to-date (through Nov 2), the off-premise model contributed 28% to total sales. Cheesecake Factory carries a Zacks Rank #3.
YUM! Brands, Inc. (YUM - Free Report) reported strong third-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both the metrics improved year over year. During third-quarter 2021, the company’s adjusted earnings of $1.22 beat the Zacks Consensus Estimate of $1.06. In the prior-year quarter, the company had reported adjusted earnings of $1.01. Quarterly revenues of $1,606 million outpaced the consensus mark of $1,584 million. The top line rose 11% year over year.
YUM! Brands’ results benefited from strong digital sales, robust unit development and a diverse global business model. The company strengthened its digital capabilities with the acquisition of Dragontail, which provides AI-based integrated kitchen order management and delivery technologies. The initiative paves the path for strengthening store operations and enhancing customer experience. During the third quarter, it reported digital sales of more than $5 billion. YUM! Brands’ carries a Zacks Rank #3.