Olive Garden parent Darden Restaurants initiated at outperform with $135 price target at RBC Capital Markets

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Olive Garden parent Darden’s stock falls after profit beat expectations but sales come up shy

Shares of Darden Restaurants Inc. slumped 2.9% in premarket trading Thursday, after the Olive Garden parent reported a fiscal first-quarter profit that beat expectations and announced a new $500 million stock buyback program, but sales that came up a bit shy. Net income rose to $170.6 million, or $1.37 a share, from $166.2 million, or $1.32 a share, in the year-ago period. Earnings per share from continuing operations grew to $1.38 from $1.34. The FactSet EPS consensus was $1.36. Total sales increased 3.5% to $2.13 billion, just below the FactSet consensus of $2.14 billion, as Olive Garden and LongHorn Steakhouse sales topped expectations but fine dining missed. Olive Garden same-store sales rose 2.2% to beat expectations of a 1.6% rise, while LongHorn same-store sales growth of 2.6% was better than expectations of 2.5% growth. Darden affirmed its fiscal 2020 outlook for total sales growth of 5.3% to 6.3% and for same-store sales to rise 1% to 2%. Darden said the new stock buyback program doesn’t have an expiration date. The stock has run up 27.3% year to date through Wednesday while the S&P 500 has gained 19.9%.

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Leave a Reply