After Darden Restaurants’ (DRI) strong results for the third quarter of fiscal 2019, its management has raised its SSSG (same-store sales growth), revenue growth, and EPS guidances for fiscal 2019.
The company’s management expects its revenue to rise 5.5%, with its overall SSSG for the year likely to be in the range of 2.5%–2.7%. Management has also raised its EPS guidance to the range of $5.76–$5.80 from its earlier guidance of $5.60–$5.70.
Analysts’ estimates for fiscal 2019
For fiscal 2019, analysts expect Darden to post revenue of $8.55 billion, which represents a rise of 5.9% from $8.08 billion in fiscal 2018. Net new restaurant additions and positive SSSG are expected to drive the company’s revenue in fiscal 2019. Darden continues to focus on the guest experience, off-premises sales, flawless execution, menu simplification, and various marketing and promotional initiatives to drive its SSSG.
Analysts expect Darden to post adjusted EPS of $5.75 in fiscal 2019, a rise of 19.6% from $4.81 in fiscal 2018. Revenue growth, EBIT margin improvements, a lower effective tax rate, and share repurchases are expected to drive the company’s EPS in fiscal 2019.
Analysts’ estimates for fiscal 2020
Analysts expect Darden’s revenue to rise 6.9% to $9.14 billion in fiscal 2020, while they expect its EPS to rise 11.7%. Darden’s management expects to open 50 new restaurants in the United States in fiscal 2020.
Next, we’ll look at analysts’ recommendations for Darden stock.