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Darden (DRI) to Report Q1 Earnings: What's in the Offing?
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Darden Restaurants, Inc. (DRI - Free Report) is scheduled to report first-quarter fiscal 2024 results on Sep 21, before the opening bell. In the last reported quarter, DRI delivered an earnings surprise of 2%.
Q1 Estimates
The Zacks Consensus Estimate for earnings is pegged at $1.73 per share, indicating growth of 10.9% year over year. The consensus estimate for revenues is pegged at $2.7 billion, suggesting an increase of 10.5% from the year-ago quarter.
Factors to Note
Darden's performance in the first quarter of fiscal 2024 is expected to have been positively impacted by robust comps, improvements in its business model and simplifications to its menu offerings. The company's strong off-premise sales are likely to have contributed significantly to its overall revenues in the quarter to be reported.
DRI’s fiscal first-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 13.6%, 1.5% and 7.9% year over year, respectively. Moreover, sales at Other business are pegged at $563.1 million, indicating growth of 6.8% from the prior-year quarter.
However, high costs are likely to have hurt margin in the quarter to be reported. For fiscal 2024, the company expects total inflation in the range of 3-4% and commodities inflation of 2.5%. Our model predicts total operating costs and expenses to rise 10.7% year over year to $2,436.6 million in fiscal first 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.
Darden has an Earnings ESP of +1.01% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks Poised to Beat Earnings Estimates
Here are some other 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 BJ's Restaurants have declined 1.6% in the past year. BJRI’s earnings surpassed the consensus estimate in all of the trailing four quarters, the average surprise being 121.2%.
The Cheesecake Factory Incorporated (CAKE - Free Report) has an Earnings ESP of +2.57% and a Zacks Rank #3 at present.
Shares of Cheesecake have declined 7.4% in the past year. CAKE’s earnings surpassed the consensus estimate in three of the trailing four quarters and missed once, the average negative surprise being 24.7%.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank #3 at present.
Shares of Chipotle have gained 14.1% in the past year. CMG’s earnings surpassed the consensus estimate in three of the trailing four quarters and missed once, the average surprise being 4.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Darden (DRI) to Report Q1 Earnings: What's in the Offing?
Darden Restaurants, Inc. (DRI - Free Report) is scheduled to report first-quarter fiscal 2024 results on Sep 21, before the opening bell. In the last reported quarter, DRI delivered an earnings surprise of 2%.
Q1 Estimates
The Zacks Consensus Estimate for earnings is pegged at $1.73 per share, indicating growth of 10.9% year over year. The consensus estimate for revenues is pegged at $2.7 billion, suggesting an increase of 10.5% from the year-ago quarter.
Factors to Note
Darden's performance in the first quarter of fiscal 2024 is expected to have been positively impacted by robust comps, improvements in its business model and simplifications to its menu offerings. The company's strong off-premise sales are likely to have contributed significantly to its overall revenues in the quarter to be reported.
DRI’s fiscal first-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 13.6%, 1.5% and 7.9% year over year, respectively. Moreover, sales at Other business are pegged at $563.1 million, indicating growth of 6.8% from the prior-year quarter.
However, high costs are likely to have hurt margin in the quarter to be reported. For fiscal 2024, the company expects total inflation in the range of 3-4% and commodities inflation of 2.5%. Our model predicts total operating costs and expenses to rise 10.7% year over year to $2,436.6 million in fiscal first quarter.
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 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.
Darden has an Earnings ESP of +1.01% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks Poised to Beat Earnings Estimates
Here are some other 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.
BJ's Restaurants, Inc. (BJRI - Free Report) has an Earnings ESP of +133.33% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of BJ's Restaurants have declined 1.6% in the past year. BJRI’s earnings surpassed the consensus estimate in all of the trailing four quarters, the average surprise being 121.2%.
The Cheesecake Factory Incorporated (CAKE - Free Report) has an Earnings ESP of +2.57% and a Zacks Rank #3 at present.
Shares of Cheesecake have declined 7.4% in the past year. CAKE’s earnings surpassed the consensus estimate in three of the trailing four quarters and missed once, the average negative surprise being 24.7%.
Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +0.99% and a Zacks Rank #3 at present.
Shares of Chipotle have gained 14.1% in the past year. CMG’s earnings surpassed the consensus estimate in three of the trailing four quarters and missed once, the average surprise being 4.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.