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Darden Restaurants, Inc. (DRI - Free Report) reported second-quarter fiscal 2017 adjusted earnings of 64 cents per share, beating the Zacks Consensus Estimate of 63 cents by 1.6%. Further, earnings surged 18.5% year over year on the back of higher revenues and lower share count. Notably, this quarter marked the ninth consecutive earnings beat for the company.
Meanwhile, total revenue of $1.64 billion marginally lagged the Zacks Consensus Estimate of $1.65 billion by 0.2%. However, revenues increased 2.1% year over year.
Behind the Headline Numbers
Beginning fiscal fourth-quarter 2015, Darden began reporting under four new segments: Olive Garden, LongHorn Steakhouse, Fine Dining, which includes The Capital Grille and Eddie V's, and Other Business. The Other Business segment includes Yard House, Seasons 52, Bahama Breeze, consumer packaged goods, and franchise revenues.
The company posted comps growth of 1.7% in the quarter, on a fiscal calendar basis. Moreover, the company witnessed an increase in sales across majority of its brands in the fiscal second quarter.
Sales at Olive Garden were up 2.5% year over year to $915 million. Meanwhile, comps increased 2.6% on the back of a 1.4% improvement in pricing and 1.2% growth in menu mix. Traffic, however, remained flat.
Sales at Fine Dining increased 4.3% to $128.6 million. Moreover, comps at The Capital Grille and Eddie V's witnessed a rise of 1.2% and 2.7%, respectively.
Revenues from Other Business inched up 2.5% year over year to $233.9 million as comps grew 0.7% and 2.6% at Yard House and Bahama Breeze, respectively. Meanwhile comps at Seasons 52 dipped 0.3% for the quarter.
At LongHorn Steakhouse, sales were flat at $365 million. Comps at LongHorn Steakhouse increased 0.1% as a 1.5% improvement in pricing, more than offset a 1.1% decline in traffic and negative menu mix of 0.3%.
The company reiterated its full-year fiscal 2017 adjusted EPS guidance in the range of $3.87 to $3.97 per share. The Zacks Consensus Estimate for fiscal 2017 is pegged at $3.91 per share.
Also, it continues to anticipate comps growth in the band of 1% to 2% in fiscal 2017.
The Zacks Consensus Estimate for Papa John’s 2016 earnings moved up 2.4% over the last 60 days. For the full year, earnings are expected to improve 19.9%.
The Zacks Consensus Estimate for Wingstop’s 2016 earnings climbed 1.8% over the last 60 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 11.99%.
Wendy’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 28.38%. Further, for 2016, EPS is expected to grow 23.9%.
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Darden (DRI) Tops Q2 Earnings, Reaffirms FY17 Guidance
Darden Restaurants, Inc. (DRI - Free Report) reported second-quarter fiscal 2017 adjusted earnings of 64 cents per share, beating the Zacks Consensus Estimate of 63 cents by 1.6%. Further, earnings surged 18.5% year over year on the back of higher revenues and lower share count. Notably, this quarter marked the ninth consecutive earnings beat for the company.
Meanwhile, total revenue of $1.64 billion marginally lagged the Zacks Consensus Estimate of $1.65 billion by 0.2%. However, revenues increased 2.1% year over year.
Behind the Headline Numbers
Beginning fiscal fourth-quarter 2015, Darden began reporting under four new segments: Olive Garden, LongHorn Steakhouse, Fine Dining, which includes The Capital Grille and Eddie V's, and Other Business. The Other Business segment includes Yard House, Seasons 52, Bahama Breeze, consumer packaged goods, and franchise revenues.
The company posted comps growth of 1.7% in the quarter, on a fiscal calendar basis. Moreover, the company witnessed an increase in sales across majority of its brands in the fiscal second quarter.
Sales at Olive Garden were up 2.5% year over year to $915 million. Meanwhile, comps increased 2.6% on the back of a 1.4% improvement in pricing and 1.2% growth in menu mix. Traffic, however, remained flat.
Sales at Fine Dining increased 4.3% to $128.6 million. Moreover, comps at The Capital Grille and Eddie V's witnessed a rise of 1.2% and 2.7%, respectively.
Revenues from Other Business inched up 2.5% year over year to $233.9 million as comps grew 0.7% and 2.6% at Yard House and Bahama Breeze, respectively. Meanwhile comps at Seasons 52 dipped 0.3% for the quarter.
At LongHorn Steakhouse, sales were flat at $365 million. Comps at LongHorn Steakhouse increased 0.1% as a 1.5% improvement in pricing, more than offset a 1.1% decline in traffic and negative menu mix of 0.3%.
DARDEN RESTRNT Price, Consensus and EPS Surprise
DARDEN RESTRNT Price, Consensus and EPS Surprise | DARDEN RESTRNT Quote
Fiscal 2017 Outlook
The company reiterated its full-year fiscal 2017 adjusted EPS guidance in the range of $3.87 to $3.97 per share. The Zacks Consensus Estimate for fiscal 2017 is pegged at $3.91 per share.
Also, it continues to anticipate comps growth in the band of 1% to 2% in fiscal 2017.
Zacks Rank & Other Stocks to Consider
Darden currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in this sector include Papa John's International Inc. (PZZA - Free Report) , Wingstop Inc. (WING - Free Report) and The Wendy's Company (WEN - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Papa John’s 2016 earnings moved up 2.4% over the last 60 days. For the full year, earnings are expected to improve 19.9%.
The Zacks Consensus Estimate for Wingstop’s 2016 earnings climbed 1.8% over the last 60 days. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 11.99%.
Wendy’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 28.38%. Further, for 2016, EPS is expected to grow 23.9%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>