What to Look for When Darden Restaurants (DRI) Reports Q1 Earnings - TheStreet

NEW YORK (TheStreet) -- Shares of Darden Restaurants (DRI) - Get Report were higher in midday trading on Friday ahead of the company's 2017 fiscal first quarter results, due out before Tuesday's opening bell.

Analysts are expecting earnings and revenue to increase year-over-year.

Wall Street is forecasting that the Orlando-based restaurant company will post earnings of 82 cents per share on revenue of $1.72 billion.

During the same quarter last year, the owner of Olive Garden and LongHorn Steakhouse earned 68 cents per diluted share on revenue of $1.69 billion.

Deutsche Bank has a "buy" rating and $76 price target on the stock ahead of the quarterly report.

"Across the restaurant landscape, the spring slowdown has been met by a summer of uncertainty, so any potential read-through management offers could ease or create concerns for the competition," the firm wrote in a note earlier today.

Deutsche Bank does not believe Darden is immune to the industry's challenges.

"But we believe the company is well positioned at the unit-level (through a focus on its core operations, driving sales through value, core and newness and alternative forms of distribution like to-go/catering) and through its capital structure," the firm said.

Seaprately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.

The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.

The team believes its strengths outweigh the fact that the company shows low profit margins.

Recently, 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 articles's author.

You can view the full analysis from the report here: DRI

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