Market Overview

Darden Continues To Cook Up Solid Results, But A Better Entry Point For The Stock Is Needed

Darden Continues To Cook Up Solid Results, But A Better Entry Point For The Stock Is Needed

Shares of Darden Restaurants, Inc. (NYSE: DRI) were trading lower by around 4 percent early Tuesday morning after the company reported its fiscal first-quarter earnings report.

The restaurant operator reported that it earned 99 cents per share in the quarter, which was in-line with the $1.00 per share Stephens' Will Slabaugh was expecting and the $0.99 per share Wall Street analysts were expecting. In fact, the earnings report marks the 11th consecutive quarter in which the company at the very least matched consensus EPS expectations.

However, the company's Olive Garden unit reported a same-store sale gain of 1.9 percent, which was short of the 2.0 percent the analyst was expecting and short of the consensus estimate of 2.8 percent. But despite a same-store sale miss, the company reaffirmed its status as a "sustained out-performer in a difficult restaurant environment."

Yet despite another positive top-line result, the stock's multiple isn't particularly attractive, Slabaugh commented. The company's status as an outperformer is already reflected in at 9.7x 2018E adjusted EBITDA and investors looking to buy the stock are better off waiting for a better entry point.

Slabaugh maintains an Equal-Weight rating on Darden's stock with an unchanged $95 price target.

Related Links:

Earnings Scheduled For September 26, 2017

8 Stocks To Watch For September 26, 2017

Latest Ratings for DRI

Nov 2020BTIGDowngradesBuyNeutral
Nov 2020BairdUpgradesNeutralOutperform
Nov 2020Cowen & Co.MaintainsMarket Perform

View More Analyst Ratings for DRI
View the Latest Analyst Ratings


Related Articles (DRI)

View Comments and Join the Discussion!

Posted-In: Olive GardenAnalyst Color Earnings News Restaurants Analyst Ratings Movers General Best of Benzinga

Latest Ratings

PBHBMO CapitalUpgrades125.0
OVIDJMP SecuritiesDowngrades
NTAPCross ResearchUpgrades63.0
LBTYAGoldman SachsUpgrades33.0
THOWedbushInitiates Coverage On107.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at