Darden Restaurants Shares Down Despite Q2 Beat
<p><a href='https://financialmodelingprep.com/financial-summary/DRI'>Darden Restaurants, Inc. (NYSE:DRI) </a>shares lost around 8% since last Thursday, despite the company’s reported strong Q2 results, with adjusted EPS coming in at $1.48, beating the consensus estimate of $1.43. Quarterly revenue was $2,272 million, better than the consensus estimate of $2,224 million.</p>
<p>The solid results were driven by better-than-expected Olive Garden sales, and margins benefiting from operational efficiencies, low marketing spend, and G&A cost controls. Meanwhile, tactical pricing actions (reaching 4% growth in H2/22) should help offset ongoing commodity/labor cost inflation pressures, which are expected to peak in Q3. </p>
<p>And while the company noted no signs, thus far, of changes in guest behavior as a result of more recent COVID-related concerns, analysts at RBC capital said they will monitor developments closely as the situation develops.</p>

NYSE:DRI