FMP
Jun 17, 2025
Darden Restaurants, Inc. (NYSE:DRI) is a prominent player in the casual dining sector, owning well-known chains like Olive Garden. As the company prepares to release its quarterly earnings on June 20, 2025, analysts are keenly observing its financial performance. The expected earnings per share (EPS) is $2.93, with projected revenues of approximately $3.25 billion.
The anticipated EPS of $2.93 represents a 10.6% increase from the previous year, while revenues are expected to rise by 10.3% to $3.25 billion. Despite this growth, the consensus EPS estimate has been slightly revised down by 0.3% over the past month. Such revisions can signal potential investor actions, as they often correlate with short-term stock price movements.
Jefferies analysts have shown renewed confidence in Darden, raising the company's price target to $210 from $165. This optimism is fueled by Olive Garden's efforts to boost customer traffic, including promotions like the "Buy One Take One" offer, which increased foot traffic by 600 basis points quarter-over-quarter. On Friday, Darden's shares traded at around $217, reflecting positive market sentiment.
Darden's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of about 25, indicating how the market values its earnings. Its price-to-sales ratio is approximately 2.24, while the enterprise value to sales ratio stands at 2.73. These figures suggest how the market values Darden's revenue and overall value relative to its sales.
The company's financial leverage is highlighted by a debt-to-equity ratio of 2.76, while its current ratio of 0.39 indicates its ability to cover short-term liabilities. With an earnings yield of 4.00%, Darden provides insight into the earnings generated per dollar invested. As the earnings release approaches, investors will closely monitor these metrics and the company's performance against expectations.
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