Four Things to Watch When Darden Reports Earnings
Darden Restaurants (NYSE: DRI) is scheduled to issue its scorecard for the first quarter of fiscal 2020 on Sept. 19 before the opening bell. The Orlando-based restaurant holding company, best known as the owner of the Olive Garden franchise, has seen shares rise by nearly 30% year to date on a total return basis. Below, let's tackle four items that will set the tone for the fiscal year -- and potentially affect share price -- when Darden releases its quarterly report.
In fiscal 2019, Darden posted revenue of $8.51 billion, an increase of 5.3% over the prior fiscal year. Management projects a year-over-year top-line improvement in 2020 of 5.3% to 6.3%. In other words, the company is aiming to maintain its progress, adding incremental annual growth of roughly one percentage point at most. Investors will anticipate a vigorous start to the year in the upcoming release, as the first quarter tends to be one of Darden's busier periods from a sales perspective. In the first quarters of fiscal 2019 and fiscal 2018, the organization posted year-over-year sales increases of 6.5% and 12.9%, respectively.
Darden's business is divided into four reportable segments. Its two largest restaurant chains -- Olive Garden and Texas LongHorn Steakhouse -- both function as individual segments. The Capital Grille and Eddie V's restaurants form the company's fine-dining segment, and its "other business" division contains the Cheddar's Scratch Kitchen, Yard House, Bahama Breeze, and Seasons 52 restaurant chains, and also consolidates results from franchised operations.
Source Fool.com
