Why Darden (DRI) Shares Are Getting Obliterated Today
Stock Story
Published Mar 21, 2024 12:32
Updated Mar 21, 2024 16:17
Why Darden (DRI) Shares Are Getting Obliterated Today
Stock Story -
What Happened: Shares of restaurant company Darden (NYSE:DRI) fell 6.3% in the morning session after the company reported fourth-quarter results and lowered its full-year topline forecast, which is never a good sign. Same-store sales growth projection was lowered to a range of 1.5% to 2.0% (down from the previous guidance for growth of 2.5% to 3.0%). In addition, revenue and same-store sales missed expectations during the quarter, leading to a weaker bottom-line performance as EPS fell below analysts' expectations. EPS guidance was also slightly below. Management stressed an operating environment that was "tougher than expected." Overall, this was a mediocre quarter for Darden.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Darden? Find out by reading the original article on StockStory.
What is the market telling us: Darden's shares are not very volatile than the market average and over the last year have had no moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Darden is up 1.1% since the beginning of the year, and at $164.01 per share it is trading close to its 52-week high of $175.89 from March 2024. Investors who bought $1,000 worth of Darden's shares 5 years ago would now be looking at an investment worth $1,413.
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Written By: Stock Story
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