Market Overview

Darden Restaurants Raises Guidance After Q2 Earnings Beat

Darden Restaurants Raises Guidance After Q2 Earnings Beat

Darden Restaurants, Inc. (NYSE: DRI) reported its fiscal second-quarter adjusted EPS above estimates, despite a higher-than-expected tax rate.

The Analyst

Stephens’ Will Slabaugh maintained an Overweight rating on Darden Restaurants, with an unchanged $135 price target.

The Thesis

Darden’s Q2 results indicated 3.5 percent growth in Olive Garden same-store sales versus the consensus forecast of around 3 percent. At 92 cents per share, the company’s adjusted EPS beat expectations by 2 cents, mainly on strong revenues, Slabaugh said.

Quarterly costs remained broadly in-line, while there was a headwind of around 4 cents per share due to higher taxes. LongHorn recorded same-store sales growth of 2.9 percent, ahead of the consensus estimate of 2.2 growth. Cheddar's business remained soft as expected.

Following the upbeat quarterly performance, Darden once again raised its FY2019 EPS guidance. The company upped its same-store sales projection to 2.5 percent growth, while revising EPS guidance from $5.52-$5.65 to $5.60-$5.70. This compares favorably with the consensus expectation of $5.65.

Darden continues to target total sales growth of 5 percent-5.5 percent, Slabaugh mentioned.

Price Action

Shares of Darden Restaurants rose 5.4 percent Tuesday afternoon to $104.23.

Related Links:

6 Of The Most Successful Fast-Food Campaigns Of All Time

4 'Tariff-Proof' Stock Picks From A Pro

Photo credit: Mike Mozart, Flickr


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 Guidance Restaurants Analyst Ratings General Best of Benzinga

Latest Ratings

PMTB of A SecuritiesMaintains18.5
IVRB of A SecuritiesMaintains3.0
EFCB of A SecuritiesMaintains15.5
NYMTB of A SecuritiesMaintains3.5
NLYB of A SecuritiesMaintains8.5
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