Darden Restaurants (NYSE: DRI) reported earnings on June 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 27 (Q4), Darden Restaurants missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Margins increased across the board.
Revenue details
Darden Restaurants reported revenue of $2.07 billion. The 24 analysts polled by S&P Capital IQ expected to see sales of $2.11 billion on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $1.99 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.15. The 25 earnings estimates compiled by S&P Capital IQ anticipated $1.15 per share. GAAP EPS of $1.15 for Q4 were 16% higher than the prior-year quarter's $0.99 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 24.1%, 20 basis points better than the prior-year quarter. Operating margin was 11.0%, 30 basis points better than the prior-year quarter. Net margin was 7.3%, 40 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.03 billion. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $8.49 billion. The average EPS estimate is $3.94.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 378 members out of 494 rating the stock outperform, and 116 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Darden Restaurants a green thumbs-up, and 26 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Darden Restaurants is outperform, with an average price target of $56.43.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Darden Restaurants. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Darden Restaurants to My Watchlist.
