Earnings Analysis - Darden Restaurants

LONDON, September 17, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings analysis on Darden Restaurants Inc. (NYSE: DRI). The company reported financial results for Q1 FY15 on September 12, 2014. During Q1 FY15, Darden Restaurants Inc.'s sales from continuing operations increased $64.3 million on a Y-o-Y basis, while the company reported a loss from continuing operations of $0.14 per share, compared with earnings of $0.32 per share in Q1 FY14. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview  

During Q1 FY15, Darden Restaurants Inc.'s sales from continuing operations increased to $1,595.8 million from $1,531.5 million in the year ago quarter. The reported quarter's sales bettered Bloomberg analysts' expectations of $1,594.0 million. The increase in sales during Q1 FY15 reflected the operation of 55 net new restaurants compared to the previous year quarter. Further, the company's US same restaurant-sales for LongHorn Steakhouse grew 2.8% and that for Specialty Restaurants Group improved 2.1%, while the same-restaurant sales for Olive Garden declined 1.3%. However, for Q1 FY15, the company reported a net loss from continuing operations of $19.3 million, compared with net earnings of $42.2 million in Q1 FY14. Analysts from Bloomberg were expecting the company to report net earnings of $41.2 million in Q1 FY15. On an adjusted basis, the company's diluted net EPS from continuing operations during Q1 FY15 stood at $0.32. The free research on DRI can be downloaded as in PDF format at:

www.Investor-Edge.com/DRIFreeReport

Gene Lee, President and COO of Darden Restaurants Inc. expressed satisfaction at the company's progress across its brands, particularly at Olive Garden. Lee stated that the Olive Garden Brand Renaissance is well underway, and the improvements in guest satisfaction and traffic trends reinforce the company's confidence in Olive Garden's potential. According to him, the company's initiative to enhance the guest experience at LongHorn and the Specialty Restaurants are delivering positive results as demonstrated by the increases in same-restaurant sales. Mr. Lee added that the company is making continued progress on its cost structure and in fiscal 2015 the company expects SG&A expenses as a percentage of sales to be the lowest since Darden became a public company. The COO of Darden informed that the company's actions are driving greater levels of performance with benefits to both its shareholders and guests and the company is confident that it has the right team and plan to build on the momentum. Sign up and read the free analyst's notes on DRI at: h

www.Investor-Edge.com/DRI-17092014

The company's board of directors declared a quarterly cash dividend of $0.55 per share on the company's outstanding common stock, which is equivalent to $2.20 per share dividend on an annual basis. The dividend will be paid on November 03, 2014, to the stockholders as of record as on October 10, 2014. The company has returned nearly $4 billion to its shareholders through dividends and share repurchases over the past ten years.  

In its guidance for FY15, the company has forecasted diluted net EPS from continuing operations of $1.74 to $1.84. On an adjusted basis, the company expects diluted net EPS from continuing operations of $2.22 to $2.30. The company further anticipates the US same-restaurant sales growth for Olive Garden, LongHorn Steakhouse and the Specialty Restaurant Group to be flat to +1%, +1% to +2% and approximately +2%, respectively. The earnings outlook also reflects previously announced plans for the opening of approximately 37 net new restaurants and a 53rd operating week.

Stock Performance 

On the day of the earnings release, September 12, 2014, shares in Darden Restaurants Inc. declined 1.47% and ended the session at $47.58. The stock has recovered since then, although, on the last close, Tuesday, September 16, 2014, it finished 0.80% lower at $49.54. The stock vacillated between $49.39 and $49.97 during the session. A total of 1.75 million shares were traded, slightly below its three months average volume of 1.77 million shares. Over the previous three trading sessions and over the last one month, the company's shares have advanced 2.59% and 6.84%, respectively. However, the stock has fallen by 8.88% from the beginning of 2014. Shares in Darden Restaurants Inc. are trading above their 50-day and 200-day moving averages of $46.51 and $49.25, respectively. Further, the stock traded at a PE ratio of 29.29 and has a Relative Strength Index (RSI) of 69.63. Visit Investor-Edge and access the latest research on DRI at:

www.Investor-Edge.com/DRIEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, Darden Restaurants Inc. has reported six transactions by five insiders. On August 22, 2014, four of the company's Independent Directors- Michael D. Rose, William M. Lewis Jr., Maria A. Sastre, and Christopher J. Fraleigh, purchased a total of 8,611 shares of Darden Restaurants Inc., worth $171,304.30, at an average price of $19.89 per share. In addition, on the same day, Charles A. Ledsinger Jr., Non-Executive Chairman at the company's board bought a total of 2,868 shares worth $62,952.80 at an average price of $21.95 per share. Complimentary in-depth research on DRI is available at:

www.Investor-Edge.com/DRIInsiderTrading

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