Darden swings back to profit in Q2 due to rising sales, cost cutting | Business News

Darden swings back to profit in Q2 due to rising sales, cost cutting

23 Dec 2015 | Author: | No comments yet »

Darden Beats on Q2 Earnings, Ups 2016 EPS & Comps View.

The company provided earnings per share guidance of $3.25-3.35 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $3.20, Marketbeat reports. Beginning fiscal fourth quarter 2015, Darden began reporting through four new segments: Olive Garden, LongHorn Steakhouse, Fine Dining, which includes The Capital Grille and Eddie V’s, and Other Business. Sales at Olive Garden were up 1.2% year over year to $892.3 million in the quarter due to an improvement in comps and revenues generated from new restaurants. Zacks Investment Research upgraded Darden Restaurants from a hold rating to a buy rating and set a $79.00 target price on the stock in a research report on Monday, September 14th.

In order to revive traffic growth and support margin expansion, the company is working on its Olive Garden Brand Renaissance plan that has helped in improving comps. While comps at Bahama Breeze compared favorably with the prior quarter comps growth, the other two units witnessed unfavorable comparisons with the preceding quarter. Through subsidiaries, the Company owns and operates all of its restaurants in the United States and Canada, except for three restaurants located in Florida and three restaurants in California, which are owned jointly by the Company and third parties, and managed by the Company, seven franchised restaurants in Puerto Rico and one Atlanta, Georgia airport location. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law.

In addition, Darden’s board has authorized a new share repurchase program under which the company may repurchase up to $500 million of its outstanding common stock. You can view the original version of this story at http://www.wkrb13.com/markets/961260/darden-restaurants-inc-dri-updates-fy16-earnings-guidance/ Receive News & Ratings for Darden Restaurants Inc.

Also, the company has raised its comps growth expectation in the range of 2.5% to 3.0% for fiscal 2016, compared with the previous range of 2% to 2.5%. Better-ranked stocks in the restaurant industry include BJ’s Restaurants, Inc. (BJRI – Analyst Report), Carrols Restaurant Group, Inc. (TAST – Snapshot Report) and Dave & Buster’s Entertainment, Inc. (PLAY – Snapshot Report).

Click to get this free report >> Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares.

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