Restaurant company Darden Restaurants Inc (NYSE:DRI) looks to keep momentum going with its fourth-quarter financial results on Thursday before market open.
Here are the earnings estimates, what experts are saying ahead of the report and the key items to watch.
Darden Q4 Earnings Estimates
Analysts expect Darden to report fourth-quarter revenue of $3.73 billion, up from $3.27 billion in last year’s fourth quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in two straight quarters, but missed estimates in six of the last 10 quarters.
Analysts expect Darden to report fourth-quarter earnings per share of $3.64, down from $2.98 in last year’s fourth quarter.
The company has beaten analyst estimates for earnings per share in five of the last 10 quarters, meeting estimates in the most recently reported third quarter.
What Experts Are Saying
Freedom Capital Markets Chief Market Strategist Jay Woods says the restaurant company has a recent history of the stock rallying after earnings, with shares up after seven of the last eight quarterly results. The average gain is 5% for shares after earnings over the last eight results.
While the stock has traded higher after earnings, shares are down over the last 52 weeks.
"A key question will be – are customers still spending and willing to dine out despite inflationary pressures?" Woods said in a weekly newsletter. "Darden has become a great barometer on the middle-income consumers."
Woods said investors should watch for same-restaurant sales figures and traffic trends across the company’s brands.
The market expert said $220 is the key upside mark and if shares can break it, they could hit upside targets of $250.
"This mark has been tough to crack, look for a pullback to re-test $205 at first, and if weaker, settle in around $195 and the 200-day moving average."
Woods said there’s not a clear risk, reward setup for the stock ahead of earnings.
Here are recent analyst ratings on Darden stock and their price targets:
- Guggenheim: Maintained Buy rating, raised price target from $230 to $235
- Evercore ISI Group: Downgraded from Outperform to In-Line, with a price target of $230
- Oppenheimer: Reiterated Outperform rating, with a price target of $235
Key Items to Watch
A recent report from Placer.ai shows that Olive Garden may be outperforming the full-service restaurant industry.
The report shows visits to Olive Garden locations were up 2.4% year-over-year in the first calendar quarter, compared to a 1.3% year-over-year decline for the overall full-service restaurant sector.
Average visits to Olive Garden locations were also up 0.5% year-over-year in the first calendar quarter, compared to a 0.5% decline for the sector on a year-over-year basis.
The third-quarter financial results from Darden saw overall sales up 5.9% year-over-year with strong same-restaurant sales and strength for Olive Garden and the LongHorn Steakhouse brand.
Investors and analysts will be looking for strong figures for Olive Garden and some of the company’s other restaurant brands to shine in the quarter based on the Placer.ai report.
Darden narrowed its full-year guidance after third-quarter results.
Investors and analysts will be looking for strong guidance for the next fiscal year and an update on how many net new restaurants the various brands are forecasting for the next year.
Darden Stock Price Action
Darden stock was up 1.36% to $213.45 on Wednesday versus a 52-week trading range of $169.00 to $222.56. Darden stock is up 15.7% year-to-date in 2026.
Photo by Jonathan Weiss via Shutterstock
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