Shares of Darden Restaurants (NYSE:DRI) have slid despite solid results. However, can it rebound in 2022? Let’s find out.Darden Restaurants, Inc. (DRI) recently provided a lower-than-expected fiscal 2022 earnings guidance, primarily due to increased labor costs. The stock has lost 4.9% over the past month to close yesterday’s trading session at $139.83. In addition, it is currently trading 14.9% below its 52-week high of $164.28, which it hit on September 23, 2021.
However, it reported impressive fiscal second-quarter results, beating Wall Street estimates. The revenue and EPS for the quarter came in at $2.27 billion and $1.48, which beat the estimates by 1.8% and 3.5%, respectively. Also, its board of directors repurchased 1.80 million shares of its common stock worth approximately $266 million in the fiscal second quarter and declared a quarterly cash dividend of $1.10 per share. Moreover, the company expects to open 35-40 new restaurants for fiscal 2022. So, the stock’s near-term prospects look bright.
Here’s what I think could influence DRI’s performance in the upcoming months: