A primary contributor to the strength of the chain-restaurant operator has been Olive Garden's turnaround story. In Q1, Olive Garden outperformed the industry by over 410 basis points, driven by remodels (60 units in FY17) and improved service initiatives. Customer satisfaction has reached an all-time high.
Olive Garden remains a bright spot for Darden, delivering eight straight quarters or positive same store growth, and posted a strong 2 percent increase in same-store sales in the latest quarter.
Despite Olive Garden's recent strength, SunTrust has a Neutral rating on Darden, saying, "We expect outperformance to persist but narrow to 200–300bps in F2H17, which may prove conservative given Olive Gardens momentum and sales driving initiatives."
SunTrust has a $70 price target on Darden.
At time of writing, Darden was up 0.98 percent on the day at $61.76.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.