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Should You Buy the Post-Earnings Dip in Darden Restaurants? -Breaking

by Mike Robinson

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© Reuters. Darden Restaurants: Should you Buy the Post-Earnings dip?

The shares of Darden Restaurants (NYSE 🙂 are down despite strong results. But, will it recover in 2022? Let’s find out.Darden Restaurants, Inc. (DRI) recently provided a lower-than-expected fiscal 2022 earnings guidance, primarily due to increased labor costs. The stock has lost 4.9% over the past month to close yesterday’s trading session at $139.83. It is also trading at 14.9% below the 52-week peak of $164.28. This high was reached on September 23rd, 2021.

It reported strong fiscal second quarter results that beat Wall Street expectations. Revenue and earnings per share for the quarter were $2.27 billion, and $1.48 respectively, beating Wall Street estimates by 1.8% e 3.5%. The board also repurchased approximately 266 million shares of common stock in fiscal quarter 2, and paid a $1.10 quarterly dividend. In fiscal 2022, 35-40 restaurants will be opened by the company. So, the stock’s near-term prospects look bright.

Here’s what I think could influence DRI’s performance in the upcoming months:

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