Darden Restaurants, Inc. (NYSE: DRI) is a prominent player in the restaurant industry, known for its popular brands like Olive Garden and LongHorn Steakhouse. The company is set to release its quarterly earnings on December 18, 2025. Analysts expect earnings per share (EPS) of $2.10 and revenue of approximately $3.07 billion.
Darden's performance is anticipated to be driven by strong revenue growth from its Olive Garden and LongHorn brands. Despite facing cost pressures from increased beef and labor expenses, the company has likely benefited from menu innovation and growth in digital and off-premise channels, including partnerships like Uber Direct.
In the previous quarter, Darden's earnings fell short of the Zacks Consensus Estimate by 1.5%, although they grew by 12.6% compared to the previous year. Revenues slightly exceeded expectations by 0.2%, marking a 10.4% year-over-year increase. Over the last four quarters, Darden has beaten the earnings estimate once and missed it three times, with an average surprise of negative 0.5%.
The market is closely watching to see if Darden's actual results will surpass these expectations, as this could positively influence the stock's price. The management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings expectations.
Darden's financial metrics, such as a price-to-earnings (P/E) ratio of approximately 19.68 and a price-to-sales ratio of about 1.76, reflect the market's valuation of its earnings and revenue. The company's debt-to-equity ratio is approximately 2.77, highlighting its leverage level, while the current ratio of around 0.40 indicates its ability to cover short-term liabilities with short-term assets.
