Darden Stock Hits New 52-Week High on Strong 4Q17 Earnings



Fiscal 4Q17 earnings

Darden Restaurants (DRI) posted its fiscal 4Q17 earnings on June 27, 2017. The company’s fiscal 4Q17 went from February 27, 2017, to May 28, 2017. In fiscal 4Q17, Darden posted adjusted EPS (earnings per share) of $1.18 on revenues of $1.9 billion.

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Stock performance

Analysts were expecting the company to post EPS of $1.15 on revenues of $1.9 billion. Darden’s 4Q17 same-store sales growth also beat analysts’ estimate of 2.4%. Both Olive Garden and LongHorn Steakhouse’s SSSG (same-store sales growth) outperformed industry benchmarks by over 5%. These factors increased investors’ confidence, leading to a rise in Darden’s stock price. On June 27, 2017, Darden’s stock price hit a new 52-week high of $95.22 but closed the day at $92.69, which represents a rise of 2.9% from its previous day’s closing price.

Year-to-date performance

Since the beginning of 2017, Darden has returned 27.5%. Along with the strong results in fiscal 3Q17, the acquisition of Cheddar’s Scratch Kitchen in April 2017 has driven Darden’s stock price. During the same period, Bloomin’ Brands (BLMN) and Texas Roadhouse (TXRH) have returned 17.4% and 5.7%, respectively. Brinker International’s (EAT) stock fell 23.1% year-to-date.

The S&P 500 Index (SPX) (SPX-INDEX) and the iShares Select Dividend ETF (DVY) have returned 8.1% and 4.2%, year-to-date, respectively.

Series overview

In this series, we’ll look at Darden’s fiscal 4Q17 earnings and its performance in key metrics during the quarter. We’ll also look at management guidance and analysts’ estimates for fiscal 2018. In the end, we’ll wrap up this series by looking at Darden’s valuation multiple and analysts’ recommendations.

Let’s start by looking at Darden’s fiscal 4Q17 revenue.


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