DRI stock: buy or sell?

DRI stock price: $99.36 -7.20% At close on February 27th, 2020

Updated on:
February 27th, 2020

1

Shares of Darden Restaurants plunged a frightening -7.20% and closed at $99.36. With Thursday it's been 4 red days in a row.

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada.

Should I buy DRI stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Darden Restaurants stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Darden Restaurants stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for DRI stock for the last 30 days.

DRI stock analysis

Daily outlook

Shares of Darden Restaurants plunged a frightening -7.20% and closed at $99.36.

Darden Restaurants closed today at $99.36 and plunged a frightening -7.20%. DRI shows a short term strength with several rising tops and rising bottoms. In the very short term, on Feb/18 it marked a new bottom at $119.01 that should act a support if Darden Restaurants starts a trading flat base in the range of $119.01 - $124.01 Trading the long side, we should wait to a new breakout over $124.01 to find the next buy point.

DRI stock chart (daily)

Weekly outlook

Shares of Darden Restaurants plunged a bloodcurdling -17.95% this week.

This week, Darden Restaurants stock lost the significant level of the 40-weeks moving average. Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support. Far behind is the all-time high Darden Restaurants recorded early September and since then the price is -21.41% below that top.

DRI stock chart (weekly)

DRI stock price history

DRI stock went public on May 9th, 1995 with a price of $3.141. Since then, DRI stock grew a 3,064.30%, with an average of 127.70% per year. If you had invested right after DRI's IPO a $1,000 in DRI stock in 1995, it would worth $30,643.00 today.

1: Adjusted price after possible price splits or reverse-splits.

DRI stock historical price chart

DRI stock reached all-time highs on September with a price of $126.43.

DRI stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price prediction for Darden Restaurants stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, Darden Restaurants reported its latest financial data, close to analysts' consensus and posted a $1.80 Earnings per Share. As soon as we get its actual EPS from the earnings report, we will update this review.
DRI earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.99n/a
2017-Q3-n/a0.95n/a
2017-Q42018-03-221.641.714.3%
2018-Q12018-03-221.641.714.3%
2018-Q22018-06-211.351.393.0%
2018-Q32018-09-201.231.348.9%
2018-Q42018-12-180.920.920.0%
2019-Q12019-03-211.751.82.9%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Darden Restaurants annual sales skyrocketed an extraordinary 12.69% to $8,080.10 million USD from $7,170.20 marked in 2017. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) remained stable a 0.69% to 7.38%.

To have an updated picture of the financial situation of Darden Restaurants, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Darden Restaurants TTM sales up to February 2019 were $8,415.40 and earnings were $679.90 million dollars. If we compare this TTM figures with the last reported annuality, we can esteem Darden Restaurants business evolution since May 2018: Annual sales up to February, compared to lastest yearly report, gained a nice 4.15%. In contrary, profit margin (net income/revenues) stayed stable at 7.38%.

DRI annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$8,550 M-$413 M4.8%-
2014$6,290 M-26.43%$183 M2.9%-55.60%
2015$6,764 M7.54%$710 M10.5%287.28%
2016$6,934 M2.51%$375 M5.4%-47.15%
2017$7,170 M3.41%$479 M6.7%27.76%
2018$8,080 M12.69%$596 M7.4%24.40%
TTM $8,415 M4.15%$680 M8.1%14.08%

Quarterly financial results

Darden Restaurants posted $2,246.50 M in sales for 2019-Q1, a 13.84% up compared to previous quarter. Reported quarter earnings marked $223.60 million with a profit margin of 9.95%. Profit margin raised a 4.10% compared to previous quarter when profit margin was 5.86%. When comparing turnover to same quarter last year, Darden Restaurants sales marked a decent increase and jumped a 5.55%.
DRI quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,930 M-$125 M6.5%-
2017-Q3$1,940 M0.52%$121 M6.3%-3.27%
2017-Q4$1,882 M-3.02%$85 M4.5%-30.17%
2018-Q1$2,128 M13.12%$218 M10.2%157.14%
2018-Q2$2,134 M0.27%$175 M8.2%-19.88%
2018-Q3$2,061 M-3.41%$166 M8.1%-4.76%
2018-Q4$1,973 M-4.27%$116 M5.9%-30.45%
2019-Q1$2,247 M13.84%$224 M10.0%93.43%

Darden Restaurants ownership

When you are planning to buy shares of a stock, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Darden Restaurants, 0.25% of all outstanding shares are owned by its staff.

Bearish positions for DRI stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Darden Restaurants:

DRI
Market cap$12.2 B
Total shares122.6 M
Float shares121.2 M
  - Institutional holdings (%)95.0%
  - Insider holdings (%)0.2%
Shares in short selling0.0%

DRI summary

Thursday, February 27th, 2020
Open$104.25
Close$99.36
Day range$99.33 - $104.51
Previous close$107.07
Session gain-7.20%
Average true range$2.87
50d mov avg$114.67
100d mov avg$113.83
200d mov avg$116.36
Daily patternlb03a
Weekly pattern

Darden Restaurants performance

To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare Darden Restaurants performance to :
Stock3m6m12m
DRIDarden Restaurant...-15.45%-16.59%-8.40%

Darden Restaurants competitors

Unfortunately, we could not find any public company that could be defined as Darden Restaurants competitor. This doesn't mean Darden Restaurants does not have any competitor in the market, it's just we could not detected it.

    Latest DRI stock news