Third-quarter performance

Darden Restaurants (DRI) posted its results for the third quarter of fiscal 2019 on March 21. For the quarter, which ended on February 24, the company posted adjusted EPS of $1.80 on revenue of $2.25 billion. Year-over-year, the company’s adjusted EPS rose 5.3%, while its revenue rose 5.5%.

Darden Stock Rises Nearly 7% on Impressive Q3 2019 Results

Stock performance

During the quarter, Darden outperformed analysts’ EPS expectation of $1.75 and their revenue estimate of $2.24 billion. The company also beat analysts’ overall SSSG (same-store sales growth) estimate of 2.2% by posting SSSG of 2.8%. After posting its third-quarter results, the company’s management raised its SSSG, revenue growth, and EPS guidances for fiscal 2019.

Darden’s strong third-quarter earnings and raising of its guidance appear to have increased investors’ confidence, leading to a rise in the company’s stock price. On March 21, the stock was trading at $116.11, a rise of 6.9% from its previous day’s closing price.

Year-to-date performance

YTD (year-to-date), Darden stock has risen 16.1%. During the same period, its peers Texas Roadhouse (TXRH), Bloomin’ Brands (BLMN), and Brinker International (EAT) have posted returns of 2.2%, -1.8%, and 10.5%, respectively. The broader comparative index, the Consumer Discretionary Select Sector SPDR ETF (XLY), which invests 8.2% of its holdings in restaurant and travel companies, has returned 15.1% YTD.

Series overview

In this series, we’ll look at Darden’s performance in the third quarter and compare it with analysts’ expectations. We’ll also cover its management’s guidance and analysts’ estimates for fiscal 2019 and fiscal 2020. Finally, we’ll look at the company’s valuation and analysts’ recommendations.

First, let’s look at Darden’s revenue.

Latest articles

23 May

Trade War Subdues Manufacturing PMIs around the World

WRITTEN BY Mayur Sontakke, CFA, FRM

Today, IHS Markit published its purchasing managers' indexes or PMIs for May countries around the world.

Best Buy (BBY) reported better-than-expected earnings for the first quarter of fiscal 2020, which ended on May 4.

23 May

Why Apple Stock Is Down 2.7% Today

WRITTEN BY John Parker

On May 23 at 12:46 PM EDT, Apple (AAPL) was trading at $179.12 with a 2.0% loss for the day.

The CBOE Volatility Index has been sitting at very low levels for most of 2019.

23 May

Cannabis Stocks Fell Due to Trade Fears

WRITTEN BY Adam Jones

On May 23, CannTrust (CTST) was trading nearly 4.1% lower, while Cronos Group (CRON) fell 3.3%.

US equity markets are in the red today amid the escalation in the US-China trade war.

172.31.38.64