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Factors Setting the Tone for Darden's (DRI) Q4 Earnings
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Darden Restaurants, Inc. (DRI - Free Report) is scheduled to report fourth-quarter fiscal 2020 results on Jun 25. In the last reported quarter, the company delivered a positive earnings surprise of 1.1%. Notably, the company has a trailing four-quarter positive earnings surprise of 2.2%, on average.
Q4 Estimates
The Zacks Consensus Estimate for fiscal fourth-quarter is pegged at a loss of $1.78, against earnings of $1.76 per share. In the past seven days, estimates for the fiscal fourth quarter have remained stable. The consensus mark for revenues is pegged at $1,249 million, suggesting a decline of 44% from the prior-year quarter.
Factors to Note
Darden’s results in the quarter to be reported is likely to reflect the negative impact of the dismal same-restaurant sales. The coronavirus pandemic has been persistently hurting same-restaurant sales. Recently, the company provided same-store sales update for the fourth quarter to date through May 17. For the fourth quarter to date through May 17, same-restaurant sales were down 39.4%, 45.8%, 63.1% and 65.5% at Olive Garden, LongHorn Steakhouse, Fine Dining and Other Business, respectively.
The Zacks Consensus Estimate for sales at Olive Garden, Fine Dining and LongHorn Steakhouse is pegged at $587 million, $62 million and $507 million, indicating year-over-year decline of 47%, 60% and 50%, respectively. Moreover, the same for Other segment stands at $199 million, suggesting a decrease of 59% from the prior-year quarter.
Moreover, high operating costs might get reflected in the company’s fiscal fourth-quarter results. Further, the non-franchised model makes it susceptible to increased expenses.
Our proven model does not conclusively predict an earnings beat for Darden Restaurants 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.
The company has an Earnings ESP of -8.06% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Domino's Pizza, Inc. (DPZ - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings of $3.07 per share outpaced the consensus mark of $2.29 and improved 39.5% on a year-over-year basis. Revenues of $873.1 million beat the consensus mark of $867 million and improved 4.4% year over year.
Yum China Holdings, Inc. (YUMC - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings of 16 cents compared favorably with the Zacks Consensus Estimate of a loss of 25 cents. However, the reported figure declined 72.9% from the year-ago quarter. Total revenues of $1,754 million beat the consensus mark of $1,145 million but deteriorated 23.9% year over year.
BJs Restaurants Inc.’s (BJRI - Free Report) first-quarter 2020 adjusted loss (excluding an impairment charge of 12 cents per share) of 10 cents per share was narrower than the Zacks Consensus Estimate of a loss of 38 cents. In the year-ago period, it had reported adjusted earnings of 62 cents per share. Total quarterly revenues of $254.6 million lagged the consensus estimate of $261.7 million by 2.7% and declined 12.4% year over year.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Factors Setting the Tone for Darden's (DRI) Q4 Earnings
Darden Restaurants, Inc. (DRI - Free Report) is scheduled to report fourth-quarter fiscal 2020 results on Jun 25. In the last reported quarter, the company delivered a positive earnings surprise of 1.1%. Notably, the company has a trailing four-quarter positive earnings surprise of 2.2%, on average.
Q4 Estimates
The Zacks Consensus Estimate for fiscal fourth-quarter is pegged at a loss of $1.78, against earnings of $1.76 per share. In the past seven days, estimates for the fiscal fourth quarter have remained stable. The consensus mark for revenues is pegged at $1,249 million, suggesting a decline of 44% from the prior-year quarter.
Factors to Note
Darden’s results in the quarter to be reported is likely to reflect the negative impact of the dismal same-restaurant sales. The coronavirus pandemic has been persistently hurting same-restaurant sales. Recently, the company provided same-store sales update for the fourth quarter to date through May 17. For the fourth quarter to date through May 17, same-restaurant sales were down 39.4%, 45.8%, 63.1% and 65.5% at Olive Garden, LongHorn Steakhouse, Fine Dining and Other Business, respectively.
The Zacks Consensus Estimate for sales at Olive Garden, Fine Dining and LongHorn Steakhouse is pegged at $587 million, $62 million and $507 million, indicating year-over-year decline of 47%, 60% and 50%, respectively. Moreover, the same for Other segment stands at $199 million, suggesting a decrease of 59% from the prior-year quarter.
Moreover, high operating costs might get reflected in the company’s fiscal fourth-quarter results. Further, the non-franchised model makes it susceptible to increased expenses.
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 does not conclusively predict an earnings beat for Darden Restaurants 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.
The company has an Earnings ESP of -8.06% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
Domino's Pizza, Inc. (DPZ - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings of $3.07 per share outpaced the consensus mark of $2.29 and improved 39.5% on a year-over-year basis. Revenues of $873.1 million beat the consensus mark of $867 million and improved 4.4% year over year.
Yum China Holdings, Inc. (YUMC - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings of 16 cents compared favorably with the Zacks Consensus Estimate of a loss of 25 cents. However, the reported figure declined 72.9% from the year-ago quarter. Total revenues of $1,754 million beat the consensus mark of $1,145 million but deteriorated 23.9% year over year.
BJs Restaurants Inc.’s (BJRI - Free Report) first-quarter 2020 adjusted loss (excluding an impairment charge of 12 cents per share) of 10 cents per share was narrower than the Zacks Consensus Estimate of a loss of 38 cents. In the year-ago period, it had reported adjusted earnings of 62 cents per share. Total quarterly revenues of $254.6 million lagged the consensus estimate of $261.7 million by 2.7% and declined 12.4% year over year.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>