Q2 Earnings Outperformers: Darden (NYSE:DRI) And The Rest Of The Sit-Down Dining Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Darden (NYSE:DRI) and the rest of the sit-down dining stocks fared in Q2.
Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.
The 9 sit-down dining stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.1%.
In light of this news, share prices of the companies have held steady as they are up 2.4% on average since the latest earnings results.
Darden (NYSE:DRI)
Founded in 1968 as Red Lobster, Darden (NYSE:DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Darden reported revenues of $3.72 billion, up 13.7% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ same-store sales estimates but full-year revenue guidance meeting analysts’ expectations.
“The fourth quarter was a strong finish to an excellent year, one in which we significantly outperformed the industry,” said Darden President & CEO Rick Cardenas.
Darden Total Revenue
Interestingly, the stock is up 3.2% since reporting and currently trades at $217.58.
Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.
The Cheesecake Factory reported revenues of $1.03 billion, up 7.7% year on year, outperforming analysts’ expectations by 2.9%. The business had a stunning quarter with an impressive beat of analysts’ same-store sales estimates and a beat of analysts’ EPS estimates.
The Cheesecake Factory Total Revenue
The market seems happy with the results as the stock is up 20.7% since reporting. It currently trades at $107.43.
Operating a franchise model, Dine Brands (NYSE:DIN) is a casual restaurant chain that owns the Applebee’s and IHOP banners.
Dine Brands reported revenues of $240.9 million, up 4.4% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a mixed quarter as it posted a miss of analysts’ EBITDA estimates.
As expected, the stock is down 1.4% since the results and currently trades at $34.37.
Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.
BJ’s reported revenues of $388.9 million, up 6.4% year on year. This print surpassed analysts’ expectations by 3.2%. It was a very strong quarter as it also produced a solid beat of analysts’ same-store sales estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
BJ’s pulled off the biggest analyst estimate beat among its peers. The stock is down 13.7% since reporting and currently trades at $64.08.
Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Bloomin’ Brands reported revenues of $1.02 billion, up 1.3% year on year. This number beat analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also recorded full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Bloomin’ Brands had the slowest revenue growth in the group. The stock is up 17.3% since reporting and currently trades at $10.47.
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