Darden Restaurants Hits Estimates in Solid Quarter
Darden Restaurants (NYS: DRI) reported earnings on Friday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 26 (Q3), Darden Restaurants met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins increased, and net margins were steady.
Darden Restaurants reported revenue of $2.16 billion. The 27 analysts polled by S&P Capital IQ anticipated revenue of $2.15 billion on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $1.98 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.25. The 30 earnings estimates compiled by S&P Capital IQ predicted $1.24 per share. GAAP EPS of $1.25 for Q3 were 16% higher than the prior-year quarter's $1.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.7%, 50 basis points worse than the prior-year quarter. Operating margin was 11.4%, 10 basis points better than the prior-year quarter. Net margin was 7.6%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $2.13 billion. On the bottom line, the average EPS estimate is $1.19.
Next year's average estimate for revenue is $8.05 billion. The average EPS estimate is $3.60.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 382 members rating the stock outperform and 113 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 130 give Darden Restaurants a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Darden Restaurants is outperform, with an average price target of $53.59.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Darden Restaurants. The Motley Fool has a disclosure policy.
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