DRI - Darden Restaurants Q3 Earnings Suggest Consumers Are Tightening Up

2024-03-21 12:10:57 ET

Summary

• Darden Restaurants, Inc. reported a 7.5% increase in total top line revenue in fiscal Q3 2024, with comparable sales up 1.0%.
• LongHorn Steakhouse saw the highest same-store sales increase at 2.3%, while Olive Garden and the fine dining segment saw declines.
• Darden reported adjusted EPS of $2.62, surpassing estimates and increasing 12% from last year, and announced a dividend of $1.31 per share for the quarter.
• Expect mostly sideways action, as the consumer seems to be getting stretched.

We previously discussed a successful public trade on Darden Restaurants, Inc. ( DRI ). In our last coverage, we told you that the play was to close the trade and to consider leaving some profit in the name of a long-term investment, collecting the dividend, and any future gains with house money. We also felt the stock was about fairly valued at the time....

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