Darden Stock Rose after Its Q3 Earnings


Mar. 21 2019, Updated 11:23 a.m. ET

Stock performance

In the third quarter, Darden Restaurant (DRI) outperformed analysts’ SSSG (same-store sales growth), revenue, and EPS expectations. The strong third-quarter results appear to have increased investors’ confidence. At 9:45 AM EST on March 21, Darden was trading at $114.56, which represents a rise of 5.5% from the previous day’s closing price.

Article continues below advertisement

Year-to-date performance

So far, Darden has been positive in 2019. The stock price has risen 8.8% YTD (year-to-date) as of March 20. However, the company’s returns have lagged the S&P 500 Index by 3.9%. During the same period, Texas Roadhouse (TXRH), Brinker International (EAT), and Bloomin’ Brands (BLMN) have returned 0.6%, -3.3%, and 8.3%, respectively. The Consumer Discretionary Select Sector SPDR ETF’s (XLY) stock price has risen 13.5% YTD.

Valuation multiple

The increase in Darden’s stock price since the beginning of 2019 has increased its valuation multiple. On March 20, Darden was trading at a forward PE ratio of 17.7x—compared to 16.5x at the beginning of 2019. Texas Roadhouse, Brinker International, and Bloomin’ Brands were trading at a forward PE ratios of 23.7x, 10.9x, and 12.8x, respectively.


On March 21, Darden’s board announced quarterly dividends of $0.75 per share. The dividends will be paid on May 1 to shareholders recorded as of April 10.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.