Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, and operates restaurants in the United States and internationally. The company operates through six segments: Applebee's Franchise Operations, International House of Pancakes (IHOP) Franchise Solutions, Fuzzy's franchise operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. It owns and franchises three restaurant concepts, including Applebee's Neighborhood Grill + Bar within the casual dining category; and IHOP in the family dining category of the restaurant industry; Fuzzy's Taco Shop within the fast-casual dining category. In addition, its Applebee's restaurants offer American fare with drinks and local draft beers; IHOP restaurants provide full table services, food and beverage; and Fuzzy's Taco Shop offers baja-style mexican food like baja tacos, chips and queso, guacamole and salsa made in house, and a full bar including margaritas, and cold draft beer. The company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is headquartered in Pasadena, California.

Dine Brands Global, Inc. Common Stock

Key Points
SoundHound's market opportunity continues to grow.
Q2 saw numerous impressive customer wins and 217% sales growth.
What does soaring revenue mean for the stock?
When I last spoke to you about SoundHound AI (NASDAQ: SOUN) in mid-July, I outlined three reasons the stock could explode to the upside. The stock rocketed 40% since the article was published, assisted by another stellar earnings report. Given the recent action, a debriefing is definitely in order. Let's take a look at what went right and what's next for this up-and-coming artificial intelligence (AI) player.
Market, customers, and revenue (oh my!)
The first pillar I mentioned in the previous article was the massive market that speech recognition has. Automobiles, drive-thrus, retail, and customer service are some of the largest and most obvious markets. Voice recognition technology in automobiles is advancing rapidly thanks to companies like SoundHound AI. The days of simply saying "play music" and hoping it doesn't make another phone call are gone.
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Future voice technology in vehicles will enable complex interactions, such as "give me directions to the highest rated Italian restaurant within five miles of my route home." Quite a step up!
Drive-thrus and customer service will also be served by AI technology with limited human involvement. This is a game-changer for the cost structures of businesses. The savings will be immense, and companies can't afford to be left behind. Statista pegs the market opportunity at $16 billion by 2030; however, this estimate may be too conservative.
Other research firms peg the total addressable market at more than $140 billion. The truth probably lies somewhere in between.
The key for SoundHound to capture as large a piece of the pie as possible is to win new customers and expand offerings with current customers. SoundHound's customer list is impressive, with well-known brands like Stellantis, Hyundai, White Castle, Jersey Mike's, and many more. SoundHound reported Q2 wins of Red Lobster, Applebee's, IHOP, and a major Chinese automotive brands, and expansions with current customers like Chipotle and Firehouse Subs. SoundHound tech is now operating at more than 10,000 restaurant locations.
The terrific execution translated easily to the top line with 217% year-over-year sales growth from $13.5 million to $42.7 million. As shown below, not only is SoundHound's revenue growing, but the growth rate is accelerating.
Sales grew 151% year over year in Q1 2025, which was exciting. But the 217% growth in Q2 took it to a new level.
What's next?
In addition to the obvious use cases for speech recognition AI, emerging markets include smart homes, financial services, smart TVs and entertainment, healthcare, and employee training. Using AI in employee training, for example, will be a huge time and cost saver. A new team member can request step-by-step instructions for procedures, seek specific guidance from company handbooks, and receive coaching from AI on best practices, brand features, and more. The technology is only scratching the surface so far.
But what does this mean for SoundHound stock? It's important to note that SoundHound isn't profitable and is losing cash from its operations. This isn't unusual for smaller, fast-growing tech companies, but it means that the company raises money to fund growth by selling additional shares of stock. This dilutes current shareholders. It isn't ideal, but it is necessary for now. The plan is for the company to become cash-flow-positive as revenue continues to rise.
The stock trades for 46 times the last 12 months' sales; however, this will drop to 36 if SoundHound hits the high end of its 2025 guidance of $178 million in revenue. The valuation is high by traditional metrics, but a company growing sales by more than 200% is not at all typical. The bottom line is that the stock is exceedingly difficult to value at this stage. For this reason, the stock isn't for everyone, and investors should be cautious. Here's a handy guide to risk tolerance.
The biggest long-term factor for success for investors will be whether the company continues to execute its growth strategy. So far, so good. The stock will likely experience significant fluctuations as it matures. Long-term investors should consider taking some profits when it rises, and adding to a core position on significant dips.
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Bradley Guichard has the following options: long January 2027 $20 calls on SoundHound AI. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Stellantis and recommends the following options: short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SoundHound Crushed Earnings and the Stock Soared. Here's What Could Come Next.

The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
CLIMB GLOBAL SOLUTIONS INC (CLMB) is a small-cap growth stock in the Computer Hardware industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Climb Global Solutions, Inc. is a value-added information technology (IT) distribution and solutions company. The Company primarily operates through its Distribution segment, which distributes emerging technologies to corporate resellers, value-added resellers (VARs), consultants and systems integrators worldwide under the name Climb Channel Solutions. This segment distributes technology products from software developers, software vendors or original equipment manufacturers (OEMs) to resellers and system integrators worldwide. The Company's Solutions segment is a cloud solutions provider and value-added reseller of software, hardware, and services to customers worldwide under the name Grey Matter. Across both segments, the Company offers an extensive line of products from software vendors and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management and other technically sophisticated domains.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of CLIMB GLOBAL SOLUTIONS INC
DINE BRANDS GLOBAL INC (DIN) is a small-cap value stock in the Restaurants industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dine Brands Global, Inc., together with its subsidiaries, owns and franchises the Applebees Neighborhood Grill + Bar (Applebees) concept in the American full-serve restaurant segment within the casual dining category of the restaurant industry. The Company also owns and franchises the International House of Pancakes (IHOP) concept in the midscale full-service restaurant segment within the family dining category of the restaurant industry and Fuzzys Taco Shop (Fuzzys) concept in the Mexican limited-service restaurant segment. Its segments include franchise operations, Rental operations, Financing operations and Company restaurant operations. The franchise operations segment consists of approximately 1,567 Applebees franchised restaurants; 1,824 IHOP franchised and area licensed restaurants, and 116 Fuzzy's franchised restaurants. The Rental operations segment consists of lease or sublease agreements covering 554 IHOP franchised restaurants and two Applebees franchised restaurants.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of DINE BRANDS GLOBAL INC
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Joel Greenblatt Strategy Daily Upgrade Report - 8/5/2025

The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
POWELL INDUSTRIES INC (POWL) is a mid-cap value stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Joel Greenblatt changed from 60% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Powell Industries, Inc. develops, designs, manufactures and services custom-engineered equipment and systems that distributes, controls and monitors the flow of electrical energy and provides protection to motors, transformers and other electrically powered equipment. The CompanyGs principal products include integrated power control room substations (PCRs), custom-engineered modules, electrical houses (E-Houses), traditional and arc-resistant distribution switchgear and control gear, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches and bus duct systems. Its products are designed for application in voltages ranging from approximately 480 volts to 38,000 volts. It serves the oil and gas and petrochemical markets, electric utility market, commercial and other industrial markets. It also provides products and services to the light rail traction power market and other markets that include universities and government entities.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD:
NEUTRAL
RETURN ON TANGIBLE CAPITAL:
NEUTRAL
FINAL RANKING:
PASS
Detailed Analysis of POWELL INDUSTRIES INC
POWL Guru Analysis
POWL Fundamental Analysis
CATALYST PHARMACEUTICALS INC (CPRX) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt changed from 40% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Catalyst Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company focused on in-licensing, developing, and commercializing medicines for patients living with rare and difficult-to-treat diseases. The Company markets three drug products: FIRDAPSE (amifampridine), FYCOMPA (perampanel), and AGAMREE (vamorolone). FIRDAPSE is a treatment for people six years of age or older living with Lambert-Eaton myasthenic syndrome (LEMS). The Company, through its sub-licensee, also offers FIRDAPSE in Canada and Japan. FYCOMPA is a prescription medicine used alone or with other medicines to treat partial-onset seizures with or without secondarily generalized seizures in people with epilepsy aged four and older and with other medicines to treat primary generalized tonic-clonic seizures in people with epilepsy aged 12 and older. AGAMREE is a corticosteroid with a structure that retains the potent anti-inflammatory effects of traditional corticosteroids used in Duchenne muscular dystrophy.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD:
NEUTRAL
RETURN ON TANGIBLE CAPITAL:
NEUTRAL
FINAL RANKING:
FAIL
Detailed Analysis of CATALYST PHARMACEUTICALS INC
CPRX Guru Analysis
CPRX Fundamental Analysis
DINE BRANDS GLOBAL INC (DIN) is a small-cap value stock in the Restaurants industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Dine Brands Global, Inc., together with its subsidiaries, owns and franchises the ApplebeeGs Neighborhood Grill + Bar (ApplebeeGs) concept in the American full-serve restaurant segment within the casual dining category of the restaurant industry. The Company also owns and franchises the International House of Pancakes (IHOP) concept in the midscale full-service restaurant segment within the family dining category of the restaurant industry and FuzzyGs Taco Shop (FuzzyGs) concept in the Mexican limited-service restaurant segment. Its segments include franchise operations, Rental operations, Financing operations and Company restaurant operations. The franchise operations segment consists of approximately 1,567 ApplebeeGs franchised restaurants; 1,824 IHOP franchised and area licensed restaurants, and 116 Fuzzy's franchised restaurants. The Rental operations segment consists of lease or sublease agreements covering 554 IHOP franchised restaurants and two ApplebeeGs franchised restaurants.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD:
NEUTRAL
RETURN ON TANGIBLE CAPITAL:
NEUTRAL
FINAL RANKING:
FAIL
Detailed Analysis of DINE BRANDS GLOBAL INC
DIN Guru Analysis
DIN Fundamental Analysis
Joel Greenblatt Portfolio
Top Joel Greenblatt Stocks
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea Joel Greenblatt Strategy Daily Upgrade Report - 5/9/2025

El Pollo Loco Holdings, Inc. LOCO is scheduled to report fourth-quarter 2024 results on March 6, 2025. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 23.5%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Notably, the company’s earnings surpassed the consensus mark in each of the trailing four quarters, with an average of 26.1%.
How are Estimates Placed for LOCO?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 13 cents per share, indicating a decrease of 18.8% from 16 cents reported a year ago. In the past 60 days, estimates for the company’s earnings have been stable.
For quarterly revenues, the consensus mark is pegged at $113.2 million, indicating a slight increase of 0.8% from the prior-year reported figure.
El Pollo Loco Holdings, Inc. Price and EPS Surprise
El Pollo Loco Holdings, Inc. price-eps-surprise | El Pollo Loco Holdings, Inc. Quote
Factors Likely to Shape LOCO’s Q4 Results
El Pollo Loco Holdings’ fourth-quarter top line is expected to have improved year over year, driven by menu innovation, competitive pricing and marketing efforts. A flexible and cost-effective unit expansion plan, along with a focus on remodeling initiatives, bodes well. However, lower transactions in December are likely to have impacted the company’s top line.
The Zacks Consensus Estimate for revenues from company-operated restaurants is pegged at $95 million, indicating an increase of 1.1% from the year-ago reported figure. The consensus mark for Franchise revenues is pegged at $11.2 million, implying an increase of 1.9% from the prior-year levels.
Meanwhile, higher general and administrative expenses, driven by increased labor-related costs and franchise expenses, are likely to have negatively impacted the bottom line in the to-be-reported quarter. The company's methodical cost-saving initiatives are expected to have provided some benefits while maintaining food quality and enhancing the guest experience.
What Our Model Says About LOCO
Our proven model does not predict an earnings beat for El Pollo Loco Holdings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.
Earnings ESP of LOCO: El Pollo Loco Holdings has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
LOCO’s Zacks Rank: The company currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings
Here are some companies in the Zacks Retail-Wholesale sector which, according to our model, have the right combination of elements to post an earnings beat.
CAVA Group, Inc. CAVA has an Earnings ESP of +0.17% and a Zacks Rank of 3 at present.
CAVA is expected to register a 16.7% year-over-year increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 62.6%.
Dine Brands Global, Inc. DIN currently has an Earnings ESP of +1.92% and a Zacks Rank of 3.
DIN reported an earnings beat in the trailing three out of four quarters and missed once, the average surprise being 5.1%. Its earnings for the to-be-reported quarter are expected to decrease 3.6% year over year.
Yum! Brands, Inc. YUM currently has an Earnings ESP of +0.69% and a Zacks Rank of 3.
YUM’s earnings for the to-be-reported quarter are expected to grow 9.6% year over year. Its earnings topped the consensus mark in two of the trailing four quarters and missed on two occasions, with a negative average surprise of 0.7%.
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DINE BRANDS GLOBAL, INC. (DIN) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

El Pollo Loco Holdings Gears Up for Q4 Earnings: What's in Store?

Sweetgreen, Inc. (SG) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.21. This compares to loss of $0.24 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -19.05%. A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced a loss of $0.18, delivering a surprise of -12.50%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
Sweetgreen, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $160.9 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.83%. This compares to year-ago revenues of $153.03 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Sweetgreen shares have lost about 30.1% since the beginning of the year versus the S&P 500's gain of 1.3%.
What's Next for Sweetgreen?
While Sweetgreen has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Sweetgreen: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.17 on $179.49 million in revenues for the coming quarter and -$0.49 on $787.54 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Dine Brands (DIN), has yet to report results for the quarter ended December 2024. The results are expected to be released on March 5.
This parent company of Applebee's and IHOP restaurants is expected to post quarterly earnings of $1.36 per share in its upcoming report, which represents a year-over-year change of -2.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Dine Brands' revenues are expected to be $201.25 million, down 2.5% from the year-ago quarter.
Should You Invest in Sweetgreen, Inc. (SG)?
Before you invest in Sweetgreen, Inc. (SG), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sweetgreen, Inc. (SG) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sweetgreen, Inc. (SG) Reports Q4 Loss, Lags Revenue Estimates

Texas Roadhouse (TXRH) came out with quarterly earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.66 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 4.22%. A quarter ago, it was expected that this restaurant chain would post earnings of $1.33 per share when it actually produced earnings of $1.26, delivering a surprise of -5.26%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Texas Roadhouse, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $1.44 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.60%. This compares to year-ago revenues of $1.16 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Texas Roadhouse shares have lost about 3.6% since the beginning of the year versus the S&P 500's gain of 4.5%.
What's Next for Texas Roadhouse?
While Texas Roadhouse has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Texas Roadhouse: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.01 on $1.48 billion in revenues for the coming quarter and $7.23 on $5.87 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Dine Brands (DIN), has yet to report results for the quarter ended December 2024. The results are expected to be released on March 5.
This parent company of Applebee's and IHOP restaurants is expected to post quarterly earnings of $1.36 per share in its upcoming report, which represents a year-over-year change of -2.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Dine Brands' revenues are expected to be $201.25 million, down 2.5% from the year-ago quarter.
Should You Invest in Texas Roadhouse, Inc. (TXRH)?
Before you invest in Texas Roadhouse, Inc. (TXRH), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Texas Roadhouse, Inc. (TXRH) : Free Stock Analysis Report
DINE BRANDS GLOBAL, INC. (DIN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Texas Roadhouse (TXRH) Surpasses Q4 Earnings and Revenue Estimates

Chipotle Mexican Grill (CMG) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 4.17%. A quarter ago, it was expected that this Mexican food chain would post earnings of $0.25 per share when it actually produced earnings of $0.27, delivering a surprise of 8%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Chipotle, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $2.85 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.17%. This compares to year-ago revenues of $2.52 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Chipotle shares have lost about 3.2% since the beginning of the year versus the S&P 500's gain of 1.9%.
What's Next for Chipotle?
While Chipotle has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Chipotle: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $3.05 billion in revenues for the coming quarter and $1.31 on $12.79 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Dine Brands (DIN), is yet to report results for the quarter ended December 2024.
This parent company of Applebee's and IHOP restaurants is expected to post quarterly earnings of $1.36 per share in its upcoming report, which represents a year-over-year change of -2.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Dine Brands' revenues are expected to be $201.25 million, down 2.5% from the year-ago quarter.
Should You Invest in Chipotle Mexican Grill, Inc. (CMG)?
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Chipotle Mexican Grill (CMG) Q4 Earnings Surpass Estimates

Darden Restaurants, Inc. (DRI), headquartered in Orlando, Florida, is a leading operator of full-service restaurants. It serves various cuisines through its iconic brands, including Olive Garden, LongHorn Steakhouse, and The Capital Grille. With a market cap of $22 billion, the company is dedicated to providing exceptional dining experiences, combining culinary excellence with warm hospitality to delight customers across the globe.
Companies with a market cap of $10 billion or more are classified as “large-cap stocks,” Darden Restaurants fits this category. Darden plays a vital role in shaping the hospitality industry, focusing on long-term growth, operational excellence, and delivering memorable dining experiences. Through its commitment to quality, innovation, and customer satisfaction, the company continues to enhance its value proposition while enriching lives through exceptional culinary offerings and warm hospitality.
Shares of this restaurant have fallen marginally from its 52-week high of $188.88, hit on Dec. 20. The stock is up 10.2% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 9.1% gain during the same time frame.
Over the past six months, DRI has risen by 21.6% and gained 15.7% over the past 52 weeks. In comparison, the NASX has climbed 10.4% over the last six months and 32.4% over the past year.
DRI has recently maintained its position above the 50-day moving average and has been trading above the 200-day moving average since August, signaling a sustained bullish trend.
On Dec. 19, Darden Restaurants delivered its Q2 2025 earnings report, boosting the stock by 14.7%. Adjusted EPS rose by 10.3% year-over-year to $2.03, slightly missing Wall Street’s estimate. Revenue increased by 6% to $2.89 billion, surpassing the consensus forecast of $2.88 billion. The company also updated its full-year fiscal 2025 guidance, projecting total sales of approximately $12.1 billion and net earnings per share from continuing operations in the range of $9.40 to $9.60.
Highlighting the contrast in performance, DRI's competitor, Dine Brands Global, Inc. (DIN), has underperformed the stock. DIN has declined 36.6% over the past 52 weeks.
Analysts are cautiously optimistic about DRI's prospects. The stock has a consensus rating of "Moderate Buy" from 28 analysts in coverage. The mean price target is $183.64, which indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Darden Restaurants Stock Outperforming the Nasdaq?

Yum Brands (YUM) came out with quarterly earnings of $1.37 per share, missing the Zacks Consensus Estimate of $1.41 per share. This compares to earnings of $1.44 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -2.84%. A quarter ago, it was expected that this parent company of KFC, Taco Bell and Pizza Hut would post earnings of $1.32 per share when it actually produced earnings of $1.35, delivering a surprise of 2.27%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Yum, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $1.83 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.34%. This compares to year-ago revenues of $1.71 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Yum shares have added about 1.6% since the beginning of the year versus the S&P 500's gain of 19.8%.
What's Next for Yum?
While Yum has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Yum: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.70 on $2.36 billion in revenues for the coming quarter and $5.59 on $7.62 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Dine Brands (DIN), another stock in the same industry, has yet to report results for the quarter ended September 2024. The results are expected to be released on November 6.
This parent company of Applebee's and IHOP restaurants is expected to post quarterly earnings of $1.33 per share in its upcoming report, which represents a year-over-year change of -8.9%. The consensus EPS estimate for the quarter has been revised 2% lower over the last 30 days to the current level.
Dine Brands' revenues are expected to be $199.41 million, down 1.6% from the year-ago quarter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Yum Brands (YUM) Misses Q3 Earnings and Revenue Estimates

The S&P 500 Index ($SPX) (SPY) Friday closed up by +0.90%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +0.81%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +1.22%.
Stocks rallied Friday as a stronger-than-expected US Sep payroll report bolstered the outlook for a soft landing. However, gains in stock indexes were limited as the strong payroll report pushed the 10-year T-note yield to a 1-3/4 month high and reduced the chances of a -50 bp Fed rate cut at the November 6-7 FOMC meeting to 0% from 35% on Thursday.
The prospect of escalating conflict in the Middle East has dampened the appetite for risk assets and is a negative factor for stocks. The US and its allies warned of “uncontrollable escalation” in the Middle East after Israel carried out bombing raids overnight near Beirut airport aimed at Hezbollah commanders and facilities. The markets are awaiting Israel’s response to Tuesday’s missile barrage from Iran after Israeli Prime Minister Netanyahu vowed to retaliate, saying Iran “made a big mistake” and “will pay.”
US Sep nonfarm payrolls rose +254,000, showing a stronger labor market than expectations of +150,000 and the largest increase in 6 months. The Sep unemployment rate unexpectedly fell -0.1 to 4.1%, showing a stronger labor market than expectations of no change at 4.2%.
US Sep average hourly earnings rose +0.4% m/m and +4.0% y/y, stronger than expectations of +0.3% m/m and +3.8% y/y.
The markets are discounting the chances at 100% for a -25 bp rate cut at the November 6-7 FOMC meeting and at 0% for a -50 bp rate cut at that meeting.
Overseas stock markets Friday settled higher. The Euro Stoxx 50 closed up by +0.68%. China's Shanghai Composite is closed for the week-long National Day holiday. Japan's Nikkei Stock 225 closed up by +0.22%.
Interest Rates
December 10-year T-notes (ZNZ24) Friday closed sharply lower by -1-2/32 points. The 10-year T-note yield rose +13.3 bp to 3.979%. Dec T-notes Friday tumbled to a 1-1/2 month low, and the 10-year T-note yield jumped to a 1-3/4 month high of 3.983%. T-notes sold off sharply Friday as the US Sep payroll report showed a larger-than-expected increase in payrolls and a stronger-than-expected increase in average hourly earnings, a hawkish factor for Fed policy that substantially reduced the chances of a -50 bp Fed rate cut to 0% at next month’s FOMC meeting. Also, an increase in inflation expectations weighed on T-note prices after the 10-year breakeven inflation rate rose to a 2-month high Friday at 2.255%.
European government bond yields Friday moved higher. The 10-year German bund yield rose to a 1-month high of 2.239% and finished up +6.6 bp at 2.210%. The 10-year UK gilt yield rose to a 2-1/4 month high of 4.138% and ended up +11.4 bp at 4.130%.
French Aug industrial production rose +1.4% m/m, stronger than expectations of +0.3% m/m and the largest increase in 15 months.
ECB Governing Council member Centeno said, "The dynamic of the labor market in the Eurozone is cooling a bit, and inflation is very close to 2%."
Swaps are discounting the chances of a -25 bp rate cut by the ECB at 91% for the October 17 meeting.
US Stock Movers
The strength of chip stocks on Friday was supportive of the overall market. Advanced Micro Devices (AMD) closed up more than +5%, and Broadcom (AVGO) closed up more than +2%. Also, Nvidia (NVDA), ON Semiconductor (ON), GlobalFoundries (GFS), KLA Corp (KLAC), Marvell Technology (MRVL), Intel (INTC), and Applied Materials (AMAT) closed up more than +1%.
Lithium producers rallied Friday, led by an 8% jump in Albemarle (ALB) to lead gainers in the S&P 500 after The Australian reported that mining giant Rio Tinto may be looking to make deals in the space.
Vistra Corp (VST) closed up more than +4% after BMO Capital Markets raised its target price on the stock to $146 from $125.
Abercrombie & Fitch (ANF) closed up more than +9% after the stock was added to JPMorgan Chase’s Positive Catalyst Watch with a price target of $195.
Willimas Cos (WMB) closed up more than +3% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $58.
M&T Bank Corp (MTB) closed up more than +4% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $210.
CVS Health Corp (CVS) closed up +3% after TD Cowen upgraded the stock to buy from hold with a price target of $85.
CH Robinson Worldwide (CHRW) closed up more than +1% after UBS upgraded the stock to buy from neutral with a price target of $140.
Homebuilders were under pressure Friday after the 10-year T-note yield jumped to a 1-3/4 month high, a negative factor for housing demand. As a result, DR Horton (DHI), Lennar (LEN), PulteGroup (PHM), and Toll Brothers (TOL) closed down more than -2%.
Shipping stocks retreated Friday, led by a -12% fall in ZIM Integrated Shipping Services (ZIM) after the US dockworkers strike was suspended, which should knock freight rates lower.
Azek Co (AZEK) closed down more than -4% after Loop Capital Markets downgraded the stock to hold from buy.
Rivian Automotive (RIVN) closed down more than -2% after cutting its full-year vehicle production forecast to 47,000-49,000 from a previous estimate of 57,000, below the consensus of 55,295.
Dine Brands Global (DIN) closed down more than -2% after Truist Securities downgraded the stock to hold from buy.
Warner Music Group (WMG) closed down more than -1% after Bank of America Global Research downgraded the stock to underperform from neutral with a price target of $30.
Nordson (NDSN) closed down more than -1% after announcing the pricing of its offering of $600 million of 4.5% notes due 2029.
Earnings Reports (10/7/2024)
Aviat Networks Inc (AVNW), Dakota Gold Corp (DC), Dakota Gold Corp (DC), Duckhorn Portfolio Inc/The (NAPA).
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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