DRI - Is Darden Restaurant Stock Too Expensive? 3 Reasons Investors Should Take a Closer Look
2023-07-05 10:00:00 ET
Darden Restaurants (NYSE: DRI) isn't a household name, but the brands it owns are, including Olive Garden, Longhorn Steakhouse, and The Capital Grille, among others. Investors have been flocking to the stock over the past year, pushing it up by nearly 50%. There are solid reasons for that advance, but at this point investors may be pricing in too much good news.
In its fiscal 2023's fourth quarter, which ended in May, Darden posted a 6.4% year-over-year sales increase. Earnings grew an even more impressive 15.2%. Same-store sales , which removes the noise from newly opened and closed restaurants, jumped a healthy 4%. These are very strong numbers and, notably, they outdistance the average for the company's dine-in peer group, with same-store sales for the group dropping 0.7% over the same time frame.
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Is Darden Restaurant Stock Too Expensive? 3 Reasons Investors Should Take a Closer Look