CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Darden Restaurants stock under pressure despite upbeat quarterly results

17:35 23 June 2022

Darden Restaurants (DRI.US) stock erased premarket gains and is currently trading nearly 2.0% lower despite the company posted upbeat  figures for the fourth quarter as sales improved, mainly thanks to the return of its fine-dining business.

  • The owner of Olive Garden and other restaurant chains earned $2.24 a share, topping analysts’ estimates of $2.21 a share. Revenue of $2.6 billion also came in above Wall Street estimates of $2.54 billion. 
  • For the current fiscal year, the company expects diluted net earnings per share in the region of $7.40 to $8, compared to the consensus EPS estimate of $8.15, however sales growth in same-restaurant may fall from 11.7% to 6%. 
  • Darden issued a revenue outlook of $10.20 billion-$10.40 billion, compared to market projections of $10.22 billion.
  • Company increased its quarterly dividend by 10% and authorized a new $1 billion share repurchase program. 
  • “By adhering to our strategy, and pricing below inflation, we ended the year with significantly better margins than pre-COVID,” said Darden CFO Raj Vennam.
  • Several analysts believe that company sales may increase in the future, however margins may take a huge hit due to surging inflation and slowing customer demand.

Darden Restaurants (DRI.US) stock has been trading in a downtrend in recent months, however price found support around $111.30 level which coincides with lower limit of the triangle structure and 38.2% Fibonacci retracement of the upward wave launched in March 2020. As long as price sits above this level, another upward impulse may be launched. Source: xStation5

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