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Darden (DRI) Beats Earnings and Revenue Estimates in Q4
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Darden Restaurants, Inc. (DRI - Free Report) is one of the largest casual dining restaurant operators. Beginning fiscal fourth quarter 2015, the company began reporting its business in four segments: Olive Garden, LongHorn Steakhouse, Fine Dining, which includes The Capital Grille and Eddie V's, and Other Business.
Most of Darden’s brands have been witnessing growth over the past few quarters on the back of sales initiatives like simplifying kitchen systems, menu innovation and technology-driven moves. Moreover, the company’s Olive Garden Brand Renaissance plan – aimed to turn around its business – has started reaping benefits. Also, the company’s efforts to check costs are commendable.
However, Darden’s higher costs, limited international presence along with a soft consumer spending environment raises concern.
Investors should note that the consensus estimate for DRI has not witnessed any significant movement over the last 60 days. Meanwhile, DRI’s earnings have been strong over the past few quarters. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 3.35%. However, revenues posted positive surprises in just one of the trailing four quarters.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: DRI beats on earnings. Our consensus earnings estimate called for earnings per share of $1.15, and the company reported earnings of $1.18 per share. Investors should note that these figures take out stock option expenses.
Revenues: DRI reported revenues of $1.93 billion, surpassing the Zacks consensus estimate of $1.86 billion.
Key Stats to Note: In fourth-quarter fiscal 2017, the company posted comps growth of 3.3% year over year, with comps at Olive Garden increasing 4.4%.
Stock Price Impact: At the time of writing, the stock price of Darden was up 3.2% during pre-market trading hours following the earnings release.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Darden (DRI) Beats Earnings and Revenue Estimates in Q4
Darden Restaurants, Inc. (DRI - Free Report) is one of the largest casual dining restaurant operators. Beginning fiscal fourth quarter 2015, the company began reporting its business in four segments: Olive Garden, LongHorn Steakhouse, Fine Dining, which includes The Capital Grille and Eddie V's, and Other Business.
Most of Darden’s brands have been witnessing growth over the past few quarters on the back of sales initiatives like simplifying kitchen systems, menu innovation and technology-driven moves. Moreover, the company’s Olive Garden Brand Renaissance plan – aimed to turn around its business – has started reaping benefits. Also, the company’s efforts to check costs are commendable.
However, Darden’s higher costs, limited international presence along with a soft consumer spending environment raises concern.
Investors should note that the consensus estimate for DRI has not witnessed any significant movement over the last 60 days. Meanwhile, DRI’s earnings have been strong over the past few quarters. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 3.35%. However, revenues posted positive surprises in just one of the trailing four quarters.
Darden Restaurants, Inc. Price and EPS Surprise
Darden Restaurants, Inc. Price and EPS Surprise | Darden Restaurants, Inc. Quote
DRI currently has a Zacks Rank #2 (Buy) but that could change following Darden’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: DRI beats on earnings. Our consensus earnings estimate called for earnings per share of $1.15, and the company reported earnings of $1.18 per share. Investors should note that these figures take out stock option expenses.
Revenues: DRI reported revenues of $1.93 billion, surpassing the Zacks consensus estimate of $1.86 billion.
Key Stats to Note: In fourth-quarter fiscal 2017, the company posted comps growth of 3.3% year over year, with comps at Olive Garden increasing 4.4%.
Stock Price Impact: At the time of writing, the stock price of Darden was up 3.2% during pre-market trading hours following the earnings release.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>