Important note
This AI stock analysis for Darden Restaurants is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Darden Restaurants - AI Stock Analysis
Analysis generated December 14, 2024
Darden Restaurants, Inc. (NYSE: DRI) is a prominent multi-brand restaurant operator headquartered in Orlando, Florida. The company owns and operates several well-known brands such as Olive Garden, LongHorn Steakhouse, The Capital Grille, and more. Darden serves millions of customers annually and is recognized for its commitment to providing superior dining experiences and hospitality.
Fundamental Analysis
Reviewing the latest fundamental statistics for Darden Restaurants reveals mixed insights. The company reported a revenue of $2.76 billion for the last quarter. This marks a 6.74% decrease compared to the previous quarter, raising some concerns. However, on a year-over-year basis, this represents a 1.06% increase, indicating stability and a slight growth trend.
The net income for the last quarter was $207 million. Despite being a 32.75% decrease from the previous quarter, this is a 6.53% increase year over year. Similarly, the EBITDA for the last quarter stood at $392 million, down 23.28% quarter-over-quarter but up 6.15% year-over-year.
The Price-to-Earnings (P/E) ratio is currently 19.34, which is within a typical range, suggesting the stock is neither overvalued nor undervalued at present. However, insider selling observed recently could be a bearish indicator, hinting at potential concerns within the company.
Technical Analysis
The current stock price of Darden Restaurants sits at $166.69, reflecting a 1.19% decrease from the prior month, signaling short-term concerns. Conversely, year-over-year, the stock price has risen by 6.27%, denoting a positive long-term trajectory.
The moving averages suggest caution ahead. The current SMA10 is 168.36, which is lower than the previous SMA10 of 168.81, indicating a possible downward trend. Additionally, the Relative Strength Index (RSI) stands at 56.7, suggesting a neutral condition, providing no strong indicators of overbought or oversold territory.
Overall, the trend is bearish, necessitating careful monitoring by prospective investors.
Alternative Data Analysis
Examining alternative data provides valuable insights into Darden Restaurants' potential future performance. Job postings are up by 99% over the last few months to 3,659 positions, signifying possible expansion efforts. However, employee sentiment remains neutral, neither strongly optimistic nor pessimistic about the company’s outlook.
Customer acquisition data is promising, with an estimated 1.2 million visitors to their webpage—up by 10% in the last couple of months. This bullish movement may suggest a growing customer base. On the contrary, customer engagement on Twitter shows a minor decline of 1%, indicating a slight decrease in interest.
The AltIndex AI score assigned to Darden Restaurants is 45, which is a hold signal, indicating no strong encouragement to buy or sell the stock immediately.
Conclusion
Darden Restaurants exhibits mixed signals across different areas of analysis. Fundamentally, while there are short-term declines in revenue, net income, and EBITDA, year-over-year growth remains positive. Technical indicators point to a cautious outlook with a bearish trend, and the alternative data presents a combination of promising growth and declining engagement.
Given these insights, the recommendation would be to hold the stock. Investors should keep a close eye on upcoming earnings reports and other key metrics that could influence the stock's trajectory.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
