Full service restaurant chain operator Darden Restaurants, Inc.
) on Tuesday provided a much weaker-than-expected fiscal second
quarter profit outlook and lowered its full-year estimates, sending
its shares tumbling lower in premarket trading.
The Orlando-based operator of Red Lobster and Olive Garden
restaurants forecast second earnings from continuing operations of
25 to 26 cents per share, which would badly miss Wall Street's view
of 47 cents. Darden's estimate includes a 5 cent per share negative
impact from closing costs associated with its acquisition of the
Yard House bar/restaurant chain, as well as a 1 cent impact from
DRI also expects second quarter same-store sales to fall 2.7%
across its properties.
For the full year, the company lowered its earnings outlook to a
range of $3.29 to $3.49 per share. Analysts are currently looking
for $3.88 per share for the year.
Darden Restaurants shares fell $4.52, or -8.6%, in premarket
The Bottom Line
Shares of Darden Restaurants (
) have a 3.82% dividend yield, based on last night's closing stock
price of $52.42. The stock has technical support in the $46-$48
price area. If the shares can firm up, we see overhead resistance
around the $54 price level.
Darden Restaurants, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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