Darden Posts Better Margins And Top EPS

Darden Restaurants DRI beat Oppenheimer's F1Q11 estimates due to "better than expected operating profit margins and strong SSS at Olive Garden despite disappointing SSS at Red Lobster and LongHorn. Systemwide SSS of 1.1% were lower than our 1.5% estimate. SSS at Olive Garden were ahead of our expectations at 2.7% versus 1.0%. Restaurant operating profit margin exceeded our expectations by 110bp. Management reiterated previous guidance, which confirms our conviction in our above consensus EPS estimates," according to Oppenheimer. Oppenheimer reiterates its Outperform rating and $50 price target. Darden Restaurants closed yesterday at $44.02. Click here to get trading ideas that could bring you a 100% return.