share_log

Darden Restaurants Visitor Growth Outpaces Industry: What's Ahead For Q2 Earnings?

Benzinga ·  Dec 18, 2024 05:29

Darden Restaurants, Inc. (NYSE:DRI) is set to report its second-quarter results on Thursday before the opening bell. Here's a look at what to expect from the largest full-service restaurant operator in the country.

What To Know: Darden Restaurants faced challenges, including rising food prices and labor shortages. Inflation also pushed the company's costs higher, keeping many consumers eating at home.

The company also reported disappointing first-quarter earnings in September. But for the second quarter, there are signs of a recovery.

According to data from Placer.ai, guest visits to Darden's restaurants like Olive Garden and LongHorn Steakhouse grew by 0.9% in the period from July through September 2024 compared to the same period in 2023.

Darden's visitor growth of 0.9% outperformed the broader full-service restaurant segment which saw a decline of 1.9% in the same period.

What Else: Darden Restaurants is counting on its exclusive, multi-year delivery partnership with Uber Technologies, Inc. (NYSE:UBER) to help boost sales, alongside various value promotions and revamped menus to attract cash-strapped consumers.

For example, Olive Garden is running its popular "Never-Ending Pasta Bowl" promotion one month early and for three weeks longer in 2024 compared to previous years.

Darden Restaurants will report its second-quarter results before Thursday's opening bell and will host a conference call to discuss the results at 8:30 a.m. ET the same day. According to estimates from Benzinga Pro, analysts expect the company to report earnings of $2.02 per share and quarterly revenue of $2.9 billion.

Price Action: According to Benzinga Pro, Darden Restaurant shares are down 1.51% at $165.04 at the time of publication Tuesday.

  • 'Americans Bought Less But Paid More,' Says Peter Schiff: Experts Digest November Retail Sales Data

Image: Shutterstock

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
    Write a comment