This Day On The Street
Continue to site
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

Juicy Dividends at Darden Restaurants

DRI also confessed that sales at its Olive Garden, Red Lobster and LongHorn Steakhouse restaurants open a year or longer fell a combined 4.6%. This figure is a key gauge of a restaurant operator's performance, because it excludes results at stores recently opened or closed. The company attributed the fall to severe winter weather.

For the quarter ended on Feb. 24, Darden earned $134.4 million, or $1.02 per share. That's down from $164.1 million, or $1.25 per share, a year earlier. Analysts' consensus estimate was $1.01 per share, so DRI beat the consensus estimate by 1 penny. The big positive had to do with revenue and sales growth.

According DRI's Web site, "Earnings from continuing operations in this year's third quarter were $134.5 million and sales were $2.26 billion, which compare to earnings from continuing operations of $164.1 million and sales of $2.16 billion in the third quarter last year." On Yahoo! Finance, you'll see that "revenue for the specialty restaurant group surged 61%, buoyed by the addition of some Yard House restaurants, as well as new restaurants for The Capital Grille, Bahama Breeze and Seasons 52."

Darden officers stated that revenue at Red Lobster dropped 6%, as it dealt with higher operating expenses and weaker sales at its locations in the U.S. open at least a year. Olive Garden's revenues moved up a smidge and revenue for LongHorn Steakhouse rose almost 7% as both chains had positive sales profits from its new restaurants.

Let's take a look at a 1-year chart that doesn't take into account the earnings report released this morning. The share price has moved in lock-step with the quarterly revenue per share, so the uptrend in the stock during the first two months of 2013 was reflected in today's revenue figures, especially the sparkling 61% increase in revenue from its specialty restaurants. DRI Chart DRI data by YCharts

Darden reaffirmed its fiscal 2013 earnings forecast of $3.06 to $3.22 per share. Analysts are forecasting earnings on the upper end of that range at a consensus of $3.17 per share. With a mild weather forecast in the quarter ahead and improving economic conditions, this should be attainable.
2 of 3

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DRI $58.62 2.60%
AAPL $93.48 -0.23%
FB $101.46 -0.44%
GOOG $679.58 -0.52%
TSLA $148.15 -1.50%


Chart of I:DJI
DOW 15,875.57 +215.39 1.38%
S&P 500 1,857.26 +28.18 1.54%
NASDAQ 4,323.9650 +57.1280 1.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs