NEW YORK (TheStreet) -- Shares of Darden Restaurants (DRI) were gaining 1.3% to $56.62 after-hours Tuesday after the Olive Garden parent company beat analysts' estimates for earnings in the fiscal second quarter.
Darden reported earnings of 28 cents a share for the fiscal second quarter, beating the FactSet consensus estimate of 27 cents a share. Revenue grew 4.9% year over year to $1.56 billion for the quarter, compared to analysts' estimates of $1.55 billion.
The restaurant operator revised its full-year fiscal 2015 EPS estimates to between $2.24 and $2.30, compared to previous estimates of $2.22 to $2.30 a share for the year. Analysts expect earnings of $2.26 a share for the year.
Darden's board of directors also declared a dividend of 55 cents a share for the third quarter. The dividend is payable on Feb.2, 2015 to all shareholders of record as of Jan. 9, 2015. The ex-dividend date is Jan. 7, 2015.
TheStreet Ratings team rates DARDEN RESTAURANTS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DARDEN RESTAURANTS INC (DRI) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins."