Darden Restaurants Beats Q2 Estimates, Shares Pop 2%

Darden Restaurants, Inc. DRI reported financial results Tuesday for the second quarter ended November 23, 2014. Total sales from continuing operations were $1.56 billion, above estimates of $1.55 billion and a 4.9 percent increase from the $1.49 billion generated in the second quarter of last year.

Earnings per diluted share from continuing operations on an adjusted basis were $0.28, above estimates of $0.27 and a 133 percent increase from the adjusted earnings of $0.12 in the second quarter last year.

On a GAAP basis, diluted net loss per share from continuing operations was $0.24, compared to the $0.05 earnings per diluted share last year.

All brands posted comparable same-restaurant gains expect for Bahama Breeze, which was down 0.6 percent.

The company tightened its current projected range for adjusted diluted net earnings per share from continuing operations for fiscal 2015. Adjusted earnings per share are projected to increase between 32 percent and 35 percent versus fiscal 2014 to $2.25 - $2.30, including the impact of the 53rd week. The lower end of guidance increased from the $2.22 previously communicated in September.

"Our brands performed well during the second quarter," said Interim CEO Gene Lee. "We have been working diligently to execute our strategy, including getting back to basics while delivering the best possible guest experience. It is starting to show in both improved revenue and profitability. While it's still early, we believe our renewed focus on operating fundamentals, coupled with our more streamlined support structure, will help us continue to grow and capture market share."

Darden Restaurants traded at $56.78 in the after-hours session, up 1.56 percent