Darden Restaurants Q1 Profit Jumps 19%, but Same-Store Sales Miss View (DRI)

By
A A A
Share |

Restaurant chain operator Darden Restaurants, Inc. ( DRI ) 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 2.3% gain.

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 trading Wednesday.

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. ( DRI ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: DRI

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

60%

Most Active by Volume

22,015,357
  • $16.0933 ▲ 0.52%
20,740,055
  • $19.36 ▲ 1.26%
20,427,862
  • $102.35 ▲ 0.10%
17,017,125
  • $49.3699 ▼ 0.12%
14,356,159
  • $13.08 ▼ 0.23%
14,048,566
  • $54.07 ▲ 19.39%
12,865,805
  • $34.86 ▲ 0.61%
12,037,136
  • $74.65 ▲ 1.08%
As of 8/29/2014, 12:28 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com