Darden Q1 Sales and EPS Miss Estimates, Guidance Reaffirmed
DRI sits 20% above its 52-week low of $169.
Summary
Darden's fiscal Q1 sales rose 5.1% to $3.20B, just below the $3.21B consensus, and adjusted EPS of $2.05 missed by a penny. Same-restaurant sales grew 3.1%, led by LongHorn Steakhouse. The company reaffirmed full-year EPS guidance of $11.10-$11.35 and repurchased $222.3M in stock. The slight miss on both top and bottom lines, while modest, could pressure shares given the stock's recent valuation at 18x forward earnings. Watch for management commentary on traffic trends and any impact from consumer spending shifts.
At the time of this announcement, DRI was trading at $203.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $24.3B. The 52-week trading range was $169.00 to $229.76. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.