Darden Offers Better-Than-Expected Q3 Outlook

Darden Restaurants, Inc. DRI shares climbed about 5 percent after the operator of Olive Garden and LongHorn Steakhouse restaurant chains provided third quarter earnings forecast that topped Street view. Orlando, Florida-based Darden said it expects adjusted earnings per share from continuing operations for its fiscal third quarter to be approximately $1.18 to $1.21, which came in above analyst's consensus estimate of $1.06 a share. The adjusted results exclude debt breakage costs from the early retirement of debt and other fees associated with the spin-off of Four Corners Property Trust that was completed on Nov. 9, 2015. Net earnings per share from continuing operations are expected to be approximately 81 to 84 cents. Darden expects same-restaurant sales to rise about 6 percent for the quarter. On a comparable calendar basis, Darden sees same-restaurant sales to increase approximately 4 percent. The company also said it appointed Ricardo Cardenas as Senior Vice President and Chief Financial Officer, effective immediately. Cardenas, who served as served as Chief Strategy Officer for Darden, would replace Jeffrey Davis who has left Darden to pursue other opportunities. Shares of Darden were up 4.7 percent at $67.64.The stock has gained 1.5 percent this year, while the S&P 500 has lost 3.2 percent.