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On Tuesday, October, 4th, Darden Restaurants (DRI - Analyst Report) will release its Q1 earnings results before the bell. The company is a Zacks Rank 3 (Hold), and they were upgraded within the last 30 days due to upward revisions in their earnings estimates.

Dave will investigate Darden Restaurants’s past earnings, look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Darden Restaurants ahead of earnings.

Darden Restaurants Inc. in Focus

Darden Restaurants is the world's largest casual dining restaurant company based on market share, sales and number of company-owned and operated restaurants. Darden Restaurants own chains including Long Horn Steakhouse, Olive Garden, and Red Lobster to name a few. Darden through its subsidiaries, engages in the ownership and operation of casual dining restaurants in the United States and Canada.

Darden Restaurants is expected to report earnings at $0.83 per share according to the Zacks Consensus Estimate. Last quarter they reported an earnings at $1.10 per share beating the Zack’s Consensus Estimate of $1.08 per share, and they have an average surprise of 12.12% over the last four quarters.

DARDEN RESTRNT Price, Consensus and EPS Surprise

DARDEN RESTRNT Price, Consensus and EPS Surprise | DARDEN RESTRNT Quote

Darden Restaurants is trading around $61 a share, and their 52-week high is $68.68 per share.

The Zacks Industry Rank classifies Darden Restaurants Ltd. in retail-restaurant industry, and their industry is in the bottom 28%. The restaurant industry is a very difficult sector for companies due to tough competition and changing consumer demands. Darden’s biggest competitors in this sector are Brinker (EAT), Texas Roadhouse (TXRH - Snapshot Report) , and BJ’s Restaurants (BJRI - Analyst Report) . Therefore, investors need to keep in mind Darden Restaurants at times can face tough challenges from competitors and consumer demands.  

Bottom Line

How should investors play Darden Restaurants ahead of their earnings report? For insights on the best options trades, make sure to watch Dave Bartosiak at 1:00pm CST next Friday to see if he’ll be bullish, or bearish. If you are interested in Dave’s exclusive live streams and service, then sign up for Zacks Live Trader.

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