Restaurant chain operator Darden Restaurants, Inc. (
) on Wednesday said its fiscal first quarter profit rose 19% from
last year, aided by higher sales.
The Orlando-based company reported fiscal first quarter net
income of $113.1 million, or 80 cents per share, compared with
$94.3 million, or 67 cents per share, in the year-ago period.
Revenue rose 4.2% from last year, to $1.81 billion.
On average, Wall Street analysts expected a smaller profit of 77
cents per share on matching revenue of $1.81 billion.
Darden said that combined same-store sales from its Olive
Garden, Red Lobster and LongHorn Steakhouse restaurants open at
least 16 months rose 1.1%, falling shy of analysts' estimate for a
Looking ahead, the company reaffirmed its full-year outlook for
a 14% to 17% rise in earnings, which translates to $3.26 to $3.35
per share. That range is in line with analyst estimates for $3.32
per share for the year.
Darden Restaurants shares fell 97 cents, or -2.2%, in premarket
The Bottom Line
We had removed shares of DRI from our recommended list back on May
14, when the stock was trading at $44.20. The company has a
dividend yield of 2.91%, based on last night's closing stock price
of $44.02. The stock has technical support in the $40 price area.
If the shares can firm up, we see overhead resistance around the
$45-$48 price levels.
Darden Restaurants, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4out of 5 stars.
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