This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Darden Slides on Forecast

ORLANDO ( TheStreet) -- Darden Restaurants (DRI - Get Report) shares tumbled in premarket trading Tuesday after the Red Lobster operator offered weak fiscal 2011 guidance.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

>>10 Restaurant Stock Winners of 2010

Darden Restaurants posted better-than-expected quarterly profits after the closing bell Monday, but downwardly revised its guidance for full-year same-store sales growth. Comparable same-store sales growth refers to sales at stores open at least one year and is a closely watched metric in the restaurant industry.

"The opportunity for sales upside and opportunity for other cost cuts to offset possible higher commodities in [the second half of fiscal 2011 and in fiscal 2012] will be key to the stock's performance in 2011," noted JPMorgan Chase analysts.

JPMorgan had an overweight rating on the stock and $56 price target.

Darden said it now expects comps to grow 2% this year, compared with its prior forecast for growth between 2% and 3%.

Disappointed investors bid Darden shares 3.3% lower ahead of the opening bell Tuesday.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DRI $70.12 -0.14%
TXRH $37.67 -0.21%
AAPL $125.97 -0.50%
FB $86.76 -0.17%
GOOG $521.87 0.01%

Markets

DOW 17,706.03 -51.88 -0.29%
S&P 500 2,072.65 -4.77 -0.23%
NASDAQ 4,995.8810 -17.2420 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs