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Darden Restaurants earnings beat estimates but Olive Garden growth weakens

Darden Restaurants reported an earnings beat and increased dividends, though shares fell due to slowing growth at Olive Garden.

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5638190Jun 25 11:47Jun 26 15:21 UTC

The brief

Darden Restaurants posted higher profits and sales for its fourth quarter, beating earnings estimates. Despite the profit growth, the company's revenue fell short of some estimates, and it reported weakening growth at its Olive Garden brand.

Coverage from CNBC, Bloomberg, and the WSJ emphasizes the contrast between the earnings beat and the cloud cast by Olive Garden's performance. Meanwhile, GuruFocus reports an 8% increase in the quarterly dividend to $1.62, and Guggenheim has raised its price target for the company to $235.

Future focus remains on the company's ability to use its scale to gain market share, as highlighted by Seeking Alpha and Placer.ai, and the impact of Olive Garden's growth trends on overall stock performance.

Synthesized by Newsylist from the headlines below under a strict no-invention contract. ✓ fact-checked: all claims supported by sources Updated 2h ago.

Quick answers

How did Darden Restaurants' quarterly dividend change?

The quarterly dividend was increased by 8% to $1.62.

Why did Darden shares fall despite beating earnings estimates?

Shares fell as weakness in Olive Garden growth clouded the earnings beat.

What is the new price target set by Guggenheim?

Guggenheim raised the price target for Darden Restaurants to $235.

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