Darden Restaurants Tops Q1 Estimates

Darden Restaurants, Inc. DRI reported better-than-expected results for its fiscal first quarter and lifted its earnings forecast for the full year. The Orlando, Florida-based company reported quarterly net earnings of $86.4 million, or $0.67 per share, compared to $503.2 million, or $3.81 per share, in the year-ago period. The year-ago quarter results included a gain on the sale of discontinued operations. Earnings per share from continuing operations came in at $0.63, while adjusted EPS from continuing operations surged 112.5 percent to $0.68. Its total sales from continuing operations rose 5.7 percent to $1.69 billion. However, analysts were expecting earnings of $0.58 per share on revenue of $1.67 billion. The average estimate among 16 Estimize users was for earnings of $0.60 per share and revenue of $1.68 billion. Same-restaurant sales gained 3.4 percent in the quarter. "Our brands performed well in the first quarter, building on the momentum from last year," said CEO Gene Lee. "We continue to make progress on our operating fundamentals of culinary innovation, attentive service and engaging atmospheres while continuing to focus on disciplined cost management. This progress is a direct result of our hard work and commitment to creating memorable guest experiences in our restaurants." Darden Restaurants now expects fiscal 2016 adjusted earnings from continuing operations of $3.15 to $3.30 per share, versus earlier forecast of $3.05 to $3.20 per share. Darden Restaurants shares rose 1.13 percent to $71.00 in pre-market trading.