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Darden Restaurants EPS Up 7.2% Amid Mixed Analyst Expectations

Darden Restaurants prepares to announce EPS of $2.82, up 7.6%. However, the company has missed analyst estimates in three of the last four quarters, raising concerns ahead of its fiscal Q3 2025 results.

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AI Rating:   6

Profit and EPS Analysis: Darden Restaurants is expected to report earnings of $2.82 per share for Q3 2025, which reflects a 7.6% increase from the previous year's $2.62. For the full fiscal year, the anticipation is an EPS of $9.52, representing a growth of 7.2% from $8.88 in fiscal 2024. This positive trend in EPS, along with an expected increase to $10.64 in fiscal 2026, can boost investor confidence, provided that the projections are met.

Mixed Performance and Market Position: Despite these expectations, it is important to note that Darden has missed consensus estimates in three of the last four quarters, which raises concerns about the company’s ability to sustain growth in an unpredictable market. Investors may be cautious ahead of the earnings announcement, weighing the historical performance against the optimistic earnings forecast.

Revenue Outlook: On the revenue front, Darden reported $2.9 billion in Q2, which was a positive surprise that led to a significant stock price increase of over 14%. Additionally, the company has raised its full-year revenue guidance to $12.1 billion, reflecting strong sales momentum and consumer demand. The growth in same-restaurant sales, particularly at LongHorn Steakhouse, indicates that the company is well-positioned for continued success.

Stock Analyst Ratings: Analysts maintain a moderately bullish outlook on DRI, with a consensus rating of “Moderate Buy.” This is supported by the fact that a majority of analysts have suggested either a “Strong Buy” or “Moderate Buy,” which can positively influence investor sentiment.

Market Underperformance: While Darden's stock has gained 18.5% over the last 52 weeks, it has underperformed compared to the S&P 500’s 22.6% gain and the Consumer Discretionary Select Sector SPDR Fund’s 32.6% growth, which could indicate potential investor hesitation about the stock's comparative performance in a broader market context.

Stocks:  DRI