Darden Restaurants’ Q2 Profit Matches View, but Same-Store Sales Fall Short (DRI)

By Dividend.com Staff,

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Restaurant chain operator Darden Restaurants, Inc. ( DRI ) late Monday said its second quarter profit jumped 24% from last year, matching analysts' view, but its same-store sales fell short of expectations.

The Orlando-based company reported fiscal second quarter net income of $74.5 million, or 53 cents per share, compared with $60.3 million, or 43 cents per share, in the year-ago period. Excluding items, profit from continuing operations was 54 cents per share.

Revenue rose 5% from last year to $1.73 billion.

On average, Wall Street analysts expected a matching profit of 54 cents per share, on matching revenue of $1.73 billion.

Same-store sales, or sales in restaurants open more than one year, rose 1.4% from last year, below the company's forecast for a 2% rise.

Looking ahead, the company reaffirmed its previous 2011 guidance for a 14% to 17% rise in full-year profit, with sales rising 5% to 6%.

Darden Restaurants shares fell $1.70, or -3.4%, in premarket trading Tuesday.

The Bottom Line
Shares of Darden Restaurants ( DRI ) have a 2.54% dividend yield, based on last night's closing stock price of $50.43. The stock has technical support in the $45-$46 price area. The shares are trading near all-time highs and have little overhead resistance.

Darden Restaurants, Inc. ( DRI ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out 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 Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: DRI

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