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Darden Restaurants (DRI) Is About to Report Q4 Earnings Tomorrow. Here’s What to Expect

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Darden Restaurants is scheduled to announce its results for the fourth quarter of Fiscal 2025 on June 20. Several analysts are upbeat about the company’s performance in Q4 FY25

Darden Restaurants (DRI) Is About to Report Q4 Earnings Tomorrow. Here’s What to Expect

Darden Restaurants (DRI) is scheduled to announce its results for the fourth quarter of Fiscal 2025 on Friday, June 20. DRI stock has risen more than 19% year-to-date. Several analysts expect the company to beat the consensus expectations, backed by improved performance at its Olive Garden chain. Analysts expect the casual dining restaurant chain to report a 12% rise in Q4 FY25 EPS (earnings per share) to $2.97.

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Revenue is estimated to grow by 10% year-over-year to about $3.26 billion. Analysts expect the company’s top line to gain from its menu promotions, UberDirect (UBER) partnership, and delivery business.

Analysts’ Views Ahead of Darden’s Q4 Earnings

Heading into the results, Truist Securities analyst Jake Bartlett increased the price target for Darden Restaurants stock to $252 from $230, while reiterating a Buy rating. The 5-star analyst stated that the setup into Q4 FY25 earnings is modestly positive, with expectations of a strong quarterly beat and solid initial FY26 guidance partially priced into the stock.

Bartlett highlighted that the Truist Card Data indicates Q4 FY25 Olive Garden same-store sales growth of 6.5%, which is above the consensus estimate of 4.5%. He expects the FY26 outlook to be above DRI’s long-term framework, supported by solid recent trends, a continued boost from delivery, and an extra operating week.

Likewise, Morgan Stanley analyst Brian Harbour boosted the price target for Darden Restaurants stock to $235 from $215 and reiterated a Buy rating. Harbour stated that it is clear by now that Q4 FY25 was a strong quarter for DRI and noted the rise in the stock. He also pointed out the sentiment shift from last year when Olive Garden was under pressure. Harbour noted that Oliver Garden is gaining from delivery, likely sharper marketing, product innovation, and easy comparisons.  

Here’s What Options Traders Anticipate

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.

Indeed, it currently says that options traders are expecting about a 5.4% move in either direction in DRI stock in reaction to Q4 FY25 results.

Is DRI a Good Stock to Buy?

Overall, Wall Street has a Moderate Buy consensus rating on Darden Restaurants stock based on 17 Buys and six Holds. The average DRI stock price target of $227.59 indicates a modest upside potential of 2.2% from current levels.

See more DRI analyst ratings

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