MU, DRI, NKE: Charting This Week's Earnings
Marley Kayden and Rick Ducat turn to three key companies reporting earnings this week. Marley takes investors through the news flow surrounding Micron (MU), Darden Restaurants (DRI), and Nike (NKE) heading into their reports.
Darden Restaurants (DRI) Earnings Expected to Grow: Should You Buy?
Darden Restaurants (DRI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
2 Restaurant Stocks Struggling After Chipotle's Dismal Results
The shares of fast-casual restaurant chains CAVA Group Inc (NYSE:CAVA) and Darden Restaurants Inc (NYSE:DRI) are both moving lower today, after sector peer Chipotle Mexican Grill (CMG) reported dismal top-line quarterly results and slashed its full-year revenue forecast.
We Still Like Darden
Darden Restaurants, Inc. delivered mixed fiscal Q1 results, with strong overall sales growth but slight misses on revenue and EPS expectations. Comparable sales rose 4.7%, led by Olive Garden and LongHorn Steakhouse, while fine dining lagged; segment profits mirrored these trends. DRI increased its quarterly dividend to $1.50 and continues robust share buybacks, supporting a 3% yield and ongoing shareholder returns.
Jobless Claims Decreased More Than Expected
Pre-market futures are up to start the first trading session since the Fed lowered interest rates 25 basis points (bps) yesterday. New data out this morning sees futures rolling off their early tops, but ultimately the reports are good.
Darden Q1 Earnings Miss Estimates, Revenues Top, Stock Down
DRI's first-quarter earnings miss expectations while revenues beat, sending the stock down 8% despite a raised sales outlook.
4 Upcoming Dividend Increases
I track companies with consistent dividend growth, focusing on those with strong financial health and above-average yields versus the S&P 500. This week's highlighted stocks average a 3.1% dividend increase and a 12.5-year growth streak, but only Darden Restaurants stands out for performance. SCHD ETF remains my preferred broad dividend growth holding, outperforming most individual names except Darden over the past decade.
Darden Restaurants: Don't Bet Against The Jewel Of FSRs
Darden Restaurants delivered strong Q4 FY25 results, driven by robust same-store sales at Olive Garden and LongHorn, plus successful Uber Direct partnerships. Management's FY26 guidance calls for 7-8% sales growth, 2-3.5% same-store sales gains, and 60-65 new restaurant openings, supporting continued margin expansion. Valuation models suggest a $240 price target, offering 6% upside, with total annual returns near 10% when including dividends and buybacks.
Darden Stock Set to Sizzle After Blowout Q4 and $1B Buyback
There are several reasons Darden Restaurants' NYSE: DRI stock price can trend higher this year, including, but not limited to, top- and bottom-line outperformance, guidance, growth, acceleration, the dividend, and share buybacks. The net result is a strong tailwind for the price action, which is gaining momentum.
Darden: Excellent Q4 Results, But Valuation Is Full
Darden Restaurants continues to outperform, driven by strong Olive Garden and LongHorn growth, margin expansion, and resilient consumer demand. Management is focusing on core brands, closing underperforming concepts, and expanding internationally through capital-light franchising for incremental growth. Guidance is robust, with 7-8% revenue growth, higher EPS targets, a 7% dividend boost, and a new $1 billion buyback authorization supported by strong free cash flow.
Darden Restaurants, Inc. (DRI) Q4 2025 Earnings Call Transcript
Darden Restaurants, Inc. (NYSE:DRI ) Q4 2025 Earnings Conference Call June 20, 2025 8:30 AM ET Company Participants Courtney Aquilla - Corporate Participant Rajesh Vennam - Senior VP & CFO Ricardo Cardenas - CEO, President & Director Conference Call Participants Andrew Strelzik - BMO Capital Markets Equity Research Andrew Michael Charles - TD Cowen, Research Division Brian James Harbour - Morgan Stanley, Research Division Brian Michael Vaccaro - Raymond James & Associates, Inc., Research Division Christopher Thomas O'Cull - Stifel, Nicolaus & Company, Incorporated, Research Division Danilo Gargiulo - Sanford C. Bernstein & Co., LLC.
Darden Stock Up on Q4 Earnings Surpass Estimates, Sales Rise Y/Y
DRI stock rises as fiscal fourth-quarter earnings and sales top estimates, fueled by strong comps and new restaurant contributions.
