Darden Restaurants Sees Handy Gain on Strong Sales, Rosy Outlook

December 19, 2017 by Chris Lange

Darden Restaurants Inc. (NYSE: DRI) released its fiscal second-quarter financial results before the markets opened on Tuesday. The company said that it had $0.73 in earnings per share (EPS) and $1.88 billion in revenue, which compares with consensus estimates from Thomson Reuters of $0.70 in EPS and revenue of $1.85 billion. The same period of last year reportedly had EPS of $0.64 and $1.64 billion in revenue.

During the quarter, blended same-restaurant sales from Darden’s legacy brands increased 3.1%. The best performer of the group was Eddie V’s, which saw same-restaurant sales increase by 6.8%.

For the fiscal 2018 full year, the company expects to see same-restaurant sales growth of roughly 2%, total sales growth of 13% and EPS in the range of $4.45 to $4.53. The consensus estimates call for $4.44 in EPS and $8.04 billion in revenue for the fiscal 2018 full year.

Darden’s cash and cash equivalents totaled $114.7 million at the end of the quarter, down from $233.1 million at the end of the previous fiscal year.

CEO Gene Lee commented:

Our strong same-restaurant sales and new restaurant growth drove continued market share gains during the quarter. That performance, in addition to our solid earnings growth, is a result of executing on our strategy. Our teams are building guest loyalty at all of our brands through their constant focus on our back-to-basics operating philosophy, which is grounded in food, service and atmosphere.

Excluding Tuesday’s move, Darden had outperformed the broad markets, with the stock up about 25% year to date. Over the past 52 weeks, the stock is up closer to 20%.

Shares of Darden were last seen up about 3.4% at $93.65, with a consensus analyst price target of $89.45 and a 52-week range of $71.02 to $95.22.

Essential Tips for Investing: Sponsored

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.