Brinker International Inc
Darden analysis: Assessing the success of a Darden brand spinoff
Darden Restaurants Inc. (DRI) has jumped since the Wall Street Journal mentioned that Barington Capital Group took a 2.8% stake, calling on Darden to split in two.
Why Analysts Expect Darden Restaurants’ Q2 EPS to Rise
For the second quarter of fiscal 2019, analysts are expecting Darden Restaurants (DRI) to post adjusted EPS of $0.91, which represents a rise of 24.2% from $0.73 in the second quarter of fiscal 2018.
Do Restaurant Operators Expect to Increase Capex in 2H15?
The expected capital expenditure index increased by 1% to 101.7 in April from 100.7 in March.
Why Did Panera Bread’s Earnings Margin Fall in 2Q16?
In 2Q16, Panera Bread (PNRA) posted EBIT (earnings before interest and tax) of $66.6 million, which led to an EBIT margin of 9.7%.
Brinker International May Report Higher Revenues
Brinker International (EAT) earns revenues from its two brands—Chili’s and Maggiano’s. The majority of its restaurants are Chili’s locations.
Darden Raised Its Earnings Guidance for Fiscal 2018
On January 8, 2018, Darden Restaurants (DRI) raised its EPS guidance for fiscal 2018 to $4.70–$4.78 from an earlier estimate of $4.45–$4.53.
Darden Restaurants: 2Q16 Earnings and Conference Call
Darden Restaurants reported its 2Q16 earnings, with an EPS of $0.54, a 28% surprise in addition to analysts’ estimates of $0.42 per share.
Must-know: Darden Restaurants traded sideways after its earnings
Darden Restaurants (DRI) reported its earnings on September 12. The shares began trading at $48.96, which was up 1% from the previous day’s closing of $48.29. The day’s high and low were $49.43 and $47.28, respectively.
Texas Roadhouse’s 1Q16 EPS Was below Analyst’s Expectations?
In 1Q16, Texas Roadhouse posted EPS of $0.5. This was lower than analysts’ estimate of $0.54. The adjusted EPS was above analysts’ estimate at $0.55.
Analysts Expect Darden’s Revenue to Rise in Fiscal 1Q18
Analysts expect Darden to post revenues of $1.93 billion in fiscal 1Q18, which represents 12.7% growth from $1.71 billion in 1Q17.
Must-know: Bloomin’ Brands refreshes menu initiatives
Bloomin’ Brands (BLMN) refreshed Carrabba’s menu in the first half of 2014 with a price point and variety in mind.
Syria strike would raise gas prices and reduce restaurants’ sales
Why higher gasoline prices can reduce people’s leftover spending at restaurants, which will negatively affect restaurant sales.
Darden analysis: Why lower average checks are outperforming
Adding a little bit of spice to the chart After compiling a list of Darden’s core competitor brands, which include Bravo Brio Restaurant Group Inc. (BBRG), Bloomin’ Brands Inc. (BLMN), Cheesecake Factory Inc. (CAKE), Texas Roadhouse Inc. (TXRH), Ignite Restaurant Group Inc. (IRG), Brinker International Inc. (EAT), and Dine Equity Inc. (DIN), we’ve added a […]
Six-Month Expansion Outlook Positive for Restaurant Operators
The six-month outlook for capital expenditure plans as of October 2014 was 101.8, which has been above 100 levels for the past 12 months.
How Did Darden Expand Its 3Q16 Revenue?
Darden Restaurants’ (DRI) revenue includes sales from all seven of its brands. The majority, or 55%, of revenues came from Olive Garden.
How Panera 2.0 Improved Its 4Q15 Same-Store Sales Growth
Panera Bread (PNRA) noted that the increase in same-store sales growth was primarily due to the implementation of Panera 2.0. Panera 2.0 utilizes digital technology to enhance customer experience and increase the company’s operational efficiency.
Analysts Raise Price Targets after Darden’s Fiscal Q1 Results
Since the announcement of Darden Restaurants’ earnings for the first quarter of fiscal 2019, Canaccord Genuity, Stifel, Jefferies, and Maxim have all raised their price targets.
Why Analysts Expect Panera Bread’s Revenue to Rise in 2Q16
Panera Bread (PNRA) earns its revenue from company-operated restaurants, royalty and franchise fees collected from franchisees, and fresh dough operations.
Darden analysis: Key benefits of a restaurant owning properties
Owning properties reduces real estate costs A restaurant business that owns its own building is a bit different from a restaurant business that rents its buildings or lands. From a business standpoint, you can think of a restaurant that owns its buildings as the sum of two businesses: restaurant and real estate. Because the real […]
Why Did Shake Shack’s Valuation Multiple Fall after 2Q16 Results?
Since its listing in January 2015, Shake Shack’s (SHAK) EV-to-sales multiple has been 4.6x–18.3x.
Casual Dining Restaurants’ Valuations: What’s Priced In?
On March 23, 2016, casual dining restaurants were trading at a median PE multiple of 18.6x. Texas Roadhouse (TXRH) at 24.4x was trading at a higher PE multiple than the others in our comparison.
Darden’s Management Raises Its Guidance for Fiscal 2019
Darden’s management expects its revenue to rise 5.5%, with its overall SSSG for the year likely to be in the range of 2.5%–2.7%.
Bloomin’ Brands loses to its peers in year-to-date returns
As of September 20, 2014, year-to-date (or YTD) returns for Bloomin’ Brands (BLMN) was -30.7%.
Must-know: Why Chili’s is changing the way we order food
Brinker International introduced a digital interface at the restaurant table. It will improve customers’ experiences. The Ziosk allows customers to order food, entertain themselves, and pay for their meal.
Bloomin’ Brands’ year-to-date return as of 3Q14
As of November 2014, Bloomin’ Brands’ (BLMN) year-to-date (or YTD) return was -7.6%. BLMN operates casual dining restaurants. It competes with companies like EAT and TXRH.
Why Burger King has long-term initiatives
Management stated that Burger King is on track to change the image of 40% of its stores in the US by the end of 2015. it’s on track to achieve this target.
An In-Depth Overview of Panera Bread
Panera Bread is a limited-service fast-casual restaurant company. In July 2017, JAB acquired Panera in a $7.5 billion deal and took it private.
Restaurant industry capital expenditure trends
The six-month outlook for capital expenditures as of August 2014 was 100.7, and has been above the 100 level for the past twelve months. If this is true, the restaurant industry is on an uptrend.
2Q15 Earnings Preview: Starbucks Up 18% since Last Quarter
On April 20, investment firm Sanford Bernstein reiterated its “outperform” rating for Starbucks (SBUX) with a price target of $56.
Restaurant Operators’ Capital Expenditure Outlook Increased
As of December 2014, the six-month outlook for capital expenditure plans was 102.4. It has been above 100 levels for the past 12 months.
Casual Dining Restaurants: Their 6-Month Stock Performance
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.
How will Panera 2.0 improve customer experience?
As of the third quarter, Panera has upgraded 43 restaurants to Panera 2.0, offering technological advancements to its customers.
Declining Fuel Prices Will Continue To Help Restaurant Stocks
There is no way to know how long we could be seeing these lower fuel prices, but restaurants should certainly benefit from the decline.
Brinker International’s Same-Store Sales Growth Expectations
Micro and macro factors can affect a restaurant’s same-store sales growth. For example, lower fuel prices can result in higher drive-through traffic.
An Investor’s Guide to Chipotle and Its Customers
Chipotle Mexican Grill (CMG) operates more than 1,700 fast-casual restaurants. Here’s everything you need to know about the business.
Why Burger King brought back Chicken Fries
During the quarter, Burger King relaunched Chicken Fries. The item was suspended in 2012. It had been replaced with other chicken items.
Why a standalone Red Lobster is key to the brand’s survival
Post-separation Red Lobster is expected to have more tailored operating initiatives focused on “maintaining stable sales by retaining core guests.”
How Buffalo Wild Wings’ Stock Performance Stands up to Peers
If you had invested $100 in Buffalo Wild Wings on March 28, 2011, it would have become $274.5 by March 28, 2016—a growth five-year rate of 22.4%.
Key restaurant industry formats: The casual dining business
Contrary to fast food restaurants, casual dining restaurants have a relaxed and casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service.
How is Panera Bread innovating its menu?
To support growth in traffic, Panera Bread added 35 hours of labor to each café and upgraded capacity with equipment and technology.
Why Brinker International needs to focus on the Millennials
Brinker International’s (EAT) management credits the growth in traffic to menu innovation. For Chili’s, the company introduced the “Fresh Mex” platform along with tableside guacamole and mix-and-match fajitas.
Restaurant Industry Outlook On Capital Expenditures
Restaurants make capital expenditures for various reasons. They do it to open new stores, purchase new equipment, and remodel existing stores.
Must-know: Darden’s promo strategies for its 2 big restaurants
Darden Restaurants (DRI) will run its Never Ending Pasta Bowl for $9.99 campaign as part of its Brand Renaissance program during the fall to boost sales at Olive Garden. Olive Garden launched the unlimited pasta campaign in September, selling 1,000 passes for $100. The pass enables a pass holder to enjoy unlimited pasta, breadsticks, and soda for 49 days, according to Fox News.
What are casual-dining restaurants?
Casual-dining restaurants Casual-dining restaurants have a relaxed, casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service. The menu is higher-priced than fast-food restaurants. Olive Garden, under the umbrella of Darden Restaurants (DRI), for example, has a price range of $10 to $20 for […]
Brinker’s Performance in the Competitive Market
The price-to-sales ratios of Brinker, Darden, Buffalo Wild Wings, Bloomin’ Brands, and DineEquity are 0.95x, 1.19x, 2.15x, 0.53x, and 2.47x, respectively.
71% Of Restaurant Operators Reported Positive Same-Store Sales
The NRA’s Current Situation Index for same-store sales stood at 105.2 in December 2014—compared to 103.5 in November.
Why Brinker International’s unit growth matters to its investors
Opening a new location is another revenue growth source for a restaurant chain. At the end of 4Q14, Brinker International had a total of 1,615 restaurants system-wide. It added 46 new system restaurants over the year.
Restaurants innovate menus to stay relevant
Restaurants often innovate their menus to remain relevant to their customers. This also helps restaurants keep up with shifting trends in the industry.
Will Darden Outperform Analysts’ EPS Estimates in Fiscal 1Q18?
In fiscal 1Q18, analysts expect Darden Restaurants (DRI) to post EPS of $0.99, which represents 12.5% growth from $0.88 in fiscal 1Q17.
How Might 1Q16 Results Affect Chipotle’s PE Multiple?
In this article, we’ll use the PE (price-to-earnings) ratio due to its high visibility in Chipotle’s (CMG) earnings.
Brinker International Launches Self-Serve ‘Ziosk’
“Ziosk” is a table-top device that customers can use to order food, redeem coupons, entertain themselves, and pay their checks after their meal.
How Does Darden Plan to Expand Its Business?
By the end of fiscal 3Q16, Darden Restaurants (DRI) operated 1,535 restaurants, including 844 Olive Gardens and 479 LongHorn Steakhouses.
Must-know: An analysis of Bloomin’ Brands’ revenue
Overall revenues for Bloomin’ Brands grew 9% to $1,111 million from $1,019 million as of the second quarter ended June 31, 2013.
Why the Restaurant Performance Index is important
The Current Situations Index is based on indicators’ past trends—same-store sales, traffic, capital expenditure, and labor. It has been at levels above 100 since March 2014.
Darden Restaurants’ Upcoming 3Q16 Results: Growth Leading the Way
Darden Restaurants is set to announce its fiscal 3Q16 earnings on April 5, 2016, before the market opens. Since its fiscal 2Q16 results on December 18, 2015, the company’s share price has appreciated by 5.2%.
Current Same-Store Sales Rise For Restaurants
According to the NRA (National Restaurant Association), 72% of operators reported a gain in same-store sales over this period, and 11% reported a decline.
Must-know: Barington says Darden’s portfolio lacks brand focus
When the Olive Garden and Red Lobster brands started to show slower growth, Darden’s CEO used diversification to promote growth.
Why Is Darden’s Revenue Expected to Expand in Fiscal 3Q16?
The overall revenue of Darden Restaurants is expected to grow to $1.8 billion in fiscal 3Q16. This is compared to $1.7 billion in fiscal 3Q15, which represents growth of 5.9%.
Lower Fuel Costs Boost Restaurant Industry
The connection may not seem direct but many restaurants are affected by higher fuel costs because they have to pay to transport ingredients.
Lower Fuel Costs Help Restaurants – Good For Supply And Demand
Fuel costs declined significantly over the past eight months. They declined from $3.67 per gallon in June 2014 to $2.20 per gallon as of February 2015.
Beating SPY: Texas Roadhouse’s 5-Year Stock Performance
We’ve discussed Texas Roadhouse’s growth, expenses, costs, and profitability. Now, we’ll discuss the company’s stock performance over the past few years.
Technology Drives Guest Satisfaction, Restaurant Stocks
A Cornell study found that a 1% increase in customer satisfaction can boost restaurant sales by $1.3 million. Technology plays a big role in this trend.
Darden analysis: Why spinoffs outperform the market by 10%
Why is Barington Capital Group proposing a spinoff? Barington Capital Group is encouraging Darden Restaurant Inc. (DRI) to split its brand because the firm believes that the restaurant conglomerate simply has too many layers and brands to manage that it’s likely hindering Darden’s competitive responsiveness rather than facilitating it. A spin-off, the investment firm says, […]
Darden analysis: Business overview shows limited differentiation
Restaurant industry breakdown The first thing investors should do before making an investment is understand the company’s industry, business, and strategy. We can broadly break the restaurant industry down into the limited-service and full-service sectors. Full-service restaurants are establishments where customers receive their meals at their table, receive table waiting services, and generally pay at […]
Darden analysis: Darden brands are losing guests to competitors
Darden’s Olive Garden and Red Lobster brands are losing guests Darden Restaurant Inc.’s (DRI) same store growth and expense breakdowns suggest the company needs to follow a different strategy. With some price cuts, guest count is falling for its Olive Garden and Red Lobster brands. Without a price cut, however, the company would have likely […]
Why did Darden CEO Clarence Otis step down?
Darden announced at the end of July that chairman and CEO Clarence Otis will step down by the end of the year or when a replacement is found. Starboard CEO Jeffrey Smith said in a statement that Otis’ retirement was long overdue and that “It’s surprising to us that it took this long.”
Why Starboard Value launches proxy fight at Darden
Starboard said it believed that the market price of Darden significantly understated the value of the company’s businesses and real estate assets. It added that its operating margins were well below its peers.
Which restaurant stocks could benefit from tablet technology?
Will tablets work at every restaurant? Most industry experts see the tablet as most suited to fast-casual or casual restaurants like Chili’s, owned by Brinker International Inc. (EAT), or Panera Bread Co. (PNRA). That’s because servers and services still play an important role in many full-service or fine-dining restaurants. Human interaction is still largely perceived […]
The Restaurant Industry: An Overview
More Americans are eating out, and they’re eating out more often. The restaurant industry’s share of the food dollar is 51%, up from 25% in 1955.
Analysts Raise Their Price Targets after DRI’s Strong Q3 Earnings
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’s Q3 2019 EPS Beat Analysts’ Estimates
In the third quarter of fiscal 2019, Darden Restaurants (DRI) posted adjusted EPS of $1.80, outperforming analysts’ EPS expectation of $1.75.
What Led to the Expansion of Darden’s EBIT Margin in Q3 2019?
Darden Restaurants’ (DRI) EBIT margin improved from 11.3% in the third quarter of fiscal 2018 to 11.8% in the third quarter of fiscal 2019.
Darden Outperforms Analysts’ Same-Store Sales Growth in Q3 2019
In the third quarter of fiscal 2019, Darden Restaurants (DRI) posted SSSG (same-store sales growth) of 2.8%, beating analysts’ expectation of 2.2%.
What Drove Darden’s Revenue in Q3 2019?
In the third quarter of fiscal 2018, Darden Restaurants (DRI) posted revenue of $2.25 billion.
Darden Stock Rises Nearly 7% on Impressive Q3 2019 Results
Darden Restaurants (DRI) posted its results for the third quarter of fiscal 2019 on March 21.
Darden Stock Rose after Its Q3 Earnings
At 9:45 AM EST on March 21, Darden was trading at $114.56, which represents a rise of 5.5% from the previous day’s closing price.
What Led to the Expansion of Darden’s EBIT Margin in Q2 2019?
During the second quarter of fiscal 2019, Darden Restaurants (DRI) posted an EBIT margin of 7.5%.
How Is Darden Restaurants Expanding Its Business?
At the end of the second quarter of fiscal 2019, Darden Restaurants (DRI) operated 1,762 restaurants.
What Drove Darden’s Same-Store Sales Growth in Q2?
Darden Restaurants (DRI) posted system-wide SSSG (same-store sales growth) of 2.1% in the second quarter of fiscal 2019.
Darden’s Q2 2019 Revenue Fell Short of Analysts’ Estimate
In the second quarter of fiscal 2019, Darden Restaurants (DRI) posted revenue of $1.97 billion, a rise of 4.9% year-over-year.
Darden Stock Rises after Management Raises Its EPS Guidance
Darden Restaurants (DRI) posted its earnings for the second quarter of fiscal 2019 on December 18.
Trinity Industries to Unlock Value in Arcosa, Board Okays Separation
Trinity Industries (TRN) is a major rail transportation solution provider in the United States. On September 25, the company announced that its board has approved the separation of its infrastructure-related businesses.
BMO Capital Downgraded Darden Restaurants
On September 24, BMO Capital downgraded Darden from “market perform” to “underperform” due to concerns about food commodity deflation.
How Is Darden Restaurants Expanding Its Operations?
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.
Why Analysts Are Optimistic about Darden’s Fiscal Q4 Earnings
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.
Darden Stock Rises after SunTrust Robinson Upgrade
By the end of June 7, Darden Restaurants (DRI) was trading at $91.40, 0.5% higher than its closing price the day prior.
Why Did SunTrust Robinson Humphrey Upgrade Darden?
On June 7, SunTrust Robinson Humphrey upgraded Darden Restaurants (DRI) from “hold” to “buy” and raised its price target from $104 to $110.
What Analysts Recommend for Darden after Fiscal 3Q18 Earnings
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.
How Darden’s Valuation Multiple Compares with Peers’
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.
What Drove Darden’s Earnings per Share in Fiscal 3Q18
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.
Why Darden’s Earnings Margin Declined in Fiscal 3Q18
In fiscal 3Q18, Darden Restaurants (DRI) posted EBIT (earnings before interest and tax) of $240.1 million, which represents an EBIT margin of 11.3%.
Darden’s Fiscal 3Q18 Same-Store Sales Growth Lower than Expectated
In fiscal 3Q18, Darden Restaurants (DRI) posted systemwide SSSG (same-store sales growth) of 2.0%, compared to analysts’ expectation of 2.5%.
What Drove Darden’s Revenue in Fiscal 3Q18?
Sales from all eight of its brands constitute Darden Restaurants’ (DRI) revenue. In fiscal 3Q18, Olive Garden generated 50.4% of total revenue.
How Darden Is Expanding Its Business
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.
What Are Analysts Recommending for Darden?
As of December 12, 2017, Darden Restaurants (DRI) was trading at $87.14.
Why Investors Are Optimistic about Darden’s Fiscal 2Q18 Earnings
Darden Restaurants (DRI) is scheduled to announce its fiscal 2Q18 earnings before the market opens on December 19, 2017.
Buffalo Wild Wings Surges 24% on Takeover Rumors
On November 14, 2017, Buffalo Wild Wings (BWLD) stock rose 24.0% following reports that the company has received a takeover bid of $2.3 billion from Roark Capital Group.
Here’s What Drove Darden Restaurants’ Earnings in Fiscal 1Q18
In fiscal 1Q18, Darden Restaurants (DRI) posted EPS (earnings per share) of $0.95. However, removing one-time expenses, its adjusted EPS was $0.99.
Why Darden Restaurants’ EBIT Margins Fell in Fiscal 1Q18
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.
How Darden Restaurants Is Expanding Its Business
At the end of fiscal 1Q18, Darden Restaurants (DRI) operated 1,701 restaurants. The company operates 847 Olive Gardens, 491 LongHorn Steakhouses, and others.