Darden Restaurants Misses in Q1, Analysts Slash Price Targets
"Darden restaurants, ticker DRI, is down 12% this week after dismal first quarter fiscal results prompted a slew of analysts to really just slash their price targets."
Darden Restaurants (DRI) faced a significant setback following disappointing Q1 fiscal results, which led several analysts to cut their price targets. The stock is down roughly 12-13% this week, reflecting mounting concerns over its performance in an evolving consumer dining landscape.
Darden Restaurants Weathers Negative Q1 Results Amid Food Inflation Concerns
"Darden Restaurants, ticker DRI. Now, looking at this stock down almost 7% on Paysport's worst day since May of 2022.... its first quarter comparable sales, unfortunately, at its core restaurant brand. So the two I mentioned, Olive Garden as well as Longhorn, disappointed. So those profit expectations trailing Wall Street expectations for the quarter."
Darden Restaurants (DRI) is under pressure, having dropped nearly 7% amid disappointing Q1 comparable sales from its key brands (Olive Garden and Longhorn) and concerns over food inflation affecting profitability. The commentary reflects a bearish view based on the gap between actual results and Wall Street expectations.
Earnings Concerns for Darden Restaurants and Olive Garden
"Darden's having a time of it today. Last I checked, it was down about 10%. ... They did say on their earnings call today that they're making portions smaller and prices might be going up."
The podcast notes a significant drop in Darden Restaurants' stock, attributed to softer-than-expected sales at Olive Garden. The commentary hints at potential headwinds from reduced portion sizes and possible price increases, which could negatively impact customer sentiment and future earnings.
Darden Restaurants Misses Earnings Expectations
"Their adjusted earnings per share missed expectations, but it also reported a miss on same-store sales at Olive Garden."
Darden Restaurants (DRI) is under pressure after missing its earnings per share and same-store sales targets, particularly at its Olive Garden chain. This has led to a 6% decline in its share price, highlighting near-term concerns for investors.