Darden Restaurants, which is an American multi-brand restaurant operator, was the S&P 500’s top gainer on June 21. Darden Restaurants pulled back on Wednesday and broke the three-day gaining streak. However, Darden Restaurants regained strength, opened higher on June 21, and surged to record high price levels.
Fiscal fourth-quarter earnings
The buying pressure in Darden Restaurants increased on Thursday amid the release of the better-than-expected fiscal fourth-quarter earnings report. According to management, the EPS in the fourth quarter was $1.40, which is 41% growth year-over-year and higher than analysts’ expectation of $1.35. The revenues in the fourth quarter were $2.13 billion—a surge from $1.93 billion recorded in the same period a year ago.
The traffic and sales at two of Darden Restaurants’ most important brands, Olive Garden and LongHorn, recorded positive growth in the fourth quarter and fiscal 2018. The market sentiment on Darden Restaurants improved. The recent restaurant recession caused a decline in peers’ sales and traffic.
Management expects the total sales to increase 4%–5% in fiscal 2019. The same-store sales are expected to grow 1%–2%. The EPS is expected to be $5.4–$5.56 in fiscal 2019. On June 21, Darden Restaurants gained 14.8% and closed the day at $107.06. Darden Restaurants is part of the S&P 500 Consumer Discretionary sector, which declined 0.7% on June 21.
Next, we’ll discuss the S&P 500’s top losses on June 21.