NEW YORK (TheStreet) -- Darden Restaurants(DRI) - Get Report stock is retreating 4.08% to $63.27 in pre-market trading on Thursday after the restaurant operator issued lower-than-expected earnings guidance for fiscal 2017.
The Orlando, FL-based company expects to report earnings of $3.80 to $3.90 per share for the next fiscal year, below estimates of $3.99 per share.
Darden set its same-restaurant sales growth outlook at 1% to 2% for the full year.
Additionally, the parent company of Olive Garden and LongHorn Steakhouse reported mixed financial results for the fiscal 2016 fourth quarter.
The company reported earnings of $1.09 per share for the quarter ended May 29, beating estimates of $1.08 per share.
Revenue declined 4.7% year over year to $1.79 billion for the fourth quarter, missing estimates of $1.81 billion. Excluding the impact of the extra week in fiscal 2015, revenue was up 2.1%.
Comparable store sales increased 2.6% for the quarter with same-restaurant sales rising 2.4% and 2.2% at Olive Garden and LongHorn Steakhouse, respectively.
Separately, Darden Restaurants has a "buy" rating and a letter grade of A+ at TheStreet Ratings because of the company's revenue growth, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
You can view the full analysis from the report here: DRI
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.