Deutsche Bank’s “buy” rating for Bloomin’ Brands (BLMN) appears to have increased investors’ confidence as Bloomin’ was trading in positive territory after the announcement.
After Darden posted strong fiscal 2019 third-quarter earnings results and raised its guidance for fiscal 2019, analysts increased their price targets on its stock.
Darden Restaurants has added 52 restaurants in the last four quarters, which represents 3.0% growth from 1,701 restaurants in the first quarter of fiscal 2018.
Analysts are expecting Darden Restaurants (DRI) to post adjusted EPS of $1.35, which represents an increase of 14.4% from $1.18 in the corresponding quarter of the previous year.
As of March 22, Darden Restaurants (DRI) was trading at $85.94. On the same day, analysts were expecting the company’s stock price to reach $101.23 in the next 12 months.
Valuation multiples help investors compare companies with similar business models. Due to the high visibility in Darden Restaurants’ (DRI) future earnings, we’ve opted for the forward PE (price-to-earnings) multiple.
In fiscal 3Q!8, Darden Restaurants (DRI) posted adjusted EPS (earnings per share) of $1.71, which represents growth of 29.5% from $1.32 in fiscal 3Q17.
By the end of fiscal 3Q18, Darden Restaurants (DRI) operated 1,733 restaurants, which included 853 Olive Garden, 499 LongHorn Steakhouse, 154 Cheddar’s Scratch Kitchen…
As of the end of fiscal 2Q18, Darden Restaurants (DRI) operates 1,722 restaurants, which includes 849 Olive Garden, 496 LongHorn Steakhouse, 153 Cheddar’s Scratch Kitchen, 68 Yard House, 57 The Capital Grille, 39 Bahama Breeze, 41 Seasons 52, and 19 Eddie V’s brand restaurants.
Darden Restaurants (DRI) posted its fiscal 2Q18 earnings on December 19. The company posted adjusted EPS (earnings per share) of $0.73 on revenues of $1.88 billion.
In fiscal 1Q18, Darden Restaurants (DRI) posted EBIT (earnings before interest and tax) of $180.9 million, which represents an EBIT margin of 9.3% compared to 9.4% in fiscal 1Q17.
At the end of fiscal 1Q18, Darden Restaurants (DRI) operated 1,701 restaurants. The company operates 847 Olive Gardens, 491 LongHorn Steakhouses, and others.
Darden Restaurants (DRI) announced its fiscal 3Q17 results on March 27, 2017. The company posted adjusted EPS (earnings per share) of $1.32 on revenue of $1.88 billion.
In fiscal 2Q17, Darden Restaurants (DRI) reported an EBIT margin of 7.1% compared to 7.0% in fiscal 2Q16. The margin was slightly lower than analysts’ estimate.
Darden Restaurants (DRI) is set to announce its fiscal 2Q17 earnings before the market opens on December 20, 2016. Since fiscal 1Q17, DRI stock has risen 23.5%.
Darden has beaten analysts’ earnings per share estimates in the last four quarters. Usually, when earnings beat analysts’ estimates, a share’s price rises.
Analysts expect Darden to pay dividends of $0.55 in fiscal 1Q17 at a payout ratio of 67.1%. For fiscal 2017, Darden is expected to pay dividends of $2.2.
In the next four quarters, analysts are expecting Texas Roadhouse to post EPS of $1.90, which represents a growth of 15.2% from the same quarters in the previous year.
Currently, analysts are expecting Texas Roadhouse to post EPS of $0.37 and $0.38 in 3Q16 and 4Q16, respectively, which could add up to $1.78 for fiscal 2016.
Texas Roadhouse (TXRH) reported its 2Q16 results on August 1 after the Market closed. TXRH posted revenue of $508.8 million and adjusted earnings per share of $0.47.
After fiscal 4Q16 results, Darden Restaurants’ (DRI) management has revised its same-store sales growth guidance for fiscal 2017 to the range of 1%–2% as compared to earlier estimates of 1%–3%.
On a comparable calendar basis, in fiscal 4Q16, Darden Restaurants (DRI) reported overall same-store sales growth of 2.6% against analysts’ estimate of 2.8%.
As of June 19, 2016, casual dining restaurants were trading at a median PE multiple of 17.9x. That day, Texas Roadhouse (TXRH) was trading higher than our other four companies.
With EPS growth of 21.4%, The Cheesecake Factory (CAKE) beat our other four companies in 1Q16. EPS growth was driven mainly by share repurchases of more than $100 million.
To have more control and implement their initiatives faster, casual dining restaurants are focused more on adding company-owned restaurants than franchised restaurants.
Revenue growth drives earnings and, in turn, raises investor confidence. In 1Q16, casual dining restaurant companies in our series posted a median revenue growth of 6.9%.
Casual dining restaurants didn’t have a good 1Q16. The five companies in our series posted a median same-store sales growth of -1.5% compared to 4.2% in 1Q15.
In this series, we’ll take a look at five casual dining restaurants. We’ll cover key fundamental parameters that are critical to analyzing their performances.
The rise in EPS estimates for the next four quarters has prompted analysts to increase their price target for TXRH for the next 12 months to $45.1 from their earlier estimate of $44.8.
The Cheesecake Factory has positioned itself as an upscale casual dining concept that focuses on providing a distinctive, high-quality dining experience.
Buffalo Wild Wings is competing in the highly competitive restaurant business, wherein innovation is a must to keep up with the changing needs of customers.
It was a tough 4Q15 for casual dining restaurants, as the minimum wage for workers went up. In this series, we’ll look at what caused these stocks to underperform in 4Q15 and most of 1Q16.
Cracker Barrel was outperformed by its peers based on the net profit margin and PE ratio. Based on the diluted EPS, Cracker Barrel outperformed its peers.
Cracker Barrel Old Country Store (CBRL) has a market cap of $3.49 billion. Its YTD performance was stable. It was in a trading range until the earnings report.
China’s same-store sales growth was -12% in 1Q15—compared to 9% growth a year ago. This directly impacted the division’s revenue growth. It fell 8.9% YoY.
Bloomin’ Brands International segment contributed about 13% of total 2014 revenue, including all company-owned and franchise restaurants outside the US.
In this series, you’ll learn about Bloomin’ Brands’ financial performance, revenue, competition, latest earnings, and stock performance over the years.
