Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Darden Shares Surge 6% on Earnings Beat, Raised Forecast, and $500MM Share Buyback

Tuesday, October 4, 2016 4:49
% of readers think this story is Fact. Add your two cents.

Darden logoRestaurant chain operator Darden Restaurants, Inc. (NYSE:DRI) this morning posted impressive fiscal Q1 earnings results, lifted its full-year outlook, and announced a new buyback plan.

The Orlando-based company reported fiscal Q1 adjusted EPS of $0.88 per share, easily beating Wall Street’s view of $0.82. Revenue rose 1.6% from last year to $1.71 billion, in-line with analyst estimates.

Same-store sales, also known as comparable sales or simply “comps”, gained 1.3% in the latest period. The breakdown of comps in Q1 across DRI’s various properties was:

  • +2.0% for Olive Garden,
  • -1.2% for The Capital Grille
  • +0.0% for Yard House,
  • +0.6% for LongHorn Steakhouse,
  • -1.7% for Eddie V’s,
  • +0.7% for Seasons 52, and
  • +3.9% for Bahama Breeze.

Looking ahead, DRI forecast full-year 2017 EPS to range from $3.87 to $3.97, up from a prior outlook of $3.80 to $3.90. Analysts are looking for $3.87 per share for the year. The company also reaffirmed its forecast for same-restaurant sales growth of approximately 1.0% to 2.0%.

Darden noted that it repurchased approximately 3.2 million shares of its common stock in Q1, and announced a massive new buyback plan as well. Its Board of Directors authorized a new $500 million share repurchase program to replace its old program.

From the press release:

“I’m pleased with our performance during the quarter and the progress we made against our strategic initiatives,” said CEO Gene Lee. “We continued to gain market share and our same-restaurant sales growth outperformed the industry by a considerable margin. We also returned significant capital to shareholders in the form of our regular dividend and $196 million in share repurchases.”


Darden shares rose in premarket trading Tuesday. Prior to today’s report, DRI had fallen 3.58%, versus a 5.83% gain in the benchmark S&P 500 index during the same period.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global


Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.