Darden's (DRI, $$116.96) Q4 sales fall short of estimates
Darden Restaurants missed fiscal fourth-quarter revenue estimates, sending its share down -4% Thursday morning,
The restaurant company’s quarterly revenue increased +4.5% year-over-year to $2.23 billion, but lagged analysts’ estimates of $2.24 billion (based on Refinitiv poll of analysts).
Total same-store sales growth across all of Darden’s restaurants came in at +1.6% for the quarter, falling short of analysts’ estimates of +2.3%.Darden mentioned a decline of -0.4% in foot traffic to its Olive Garden locations open at least a year. The restaurant reported same-store sales growth of 2.4%.
However, Darden did beat earnings expectations for the quarter. It reported adjusted earnings per share of $1.76, compared to Wall Street’s estimates of $1.73.
Looking ahead, the company expects same-store sales growth of 1% to 2%, and net earnings per share of $6.30 to $6.45.
DRI in upward trend: price rose above 50-day moving average on April 14, 2025
DRI moved above its 50-day moving average on April 14, 2025 date and that indicates a change from a downward trend to an upward trend. In of 44 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The 10-day moving average for DRI crossed bullishly above the 50-day moving average on April 22, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DRI advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 68 cases where DRI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 06, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on DRI as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DRI turned negative on May 06, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 59 similar instances when the indicator turned negative. In of the 59 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DRI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
DRI broke above its upper Bollinger Band on May 02, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.549) is normal, around the industry mean (5.924). P/E Ratio (22.354) is within average values for comparable stocks, (42.157). Projected Growth (PEG Ratio) (1.947) is also within normal values, averaging (1.743). Dividend Yield (0.028) settles around the average of (0.046) among similar stocks. P/S Ratio (2.007) is also within normal values, averaging (8.586).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DRI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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General Information
an operator of casual-dining restaurants
Industry Restaurants