Free Research Report as Darden Restaurants’ Quarterly Earnings Increased 29.55%

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LONDON, UK / ACCESSWIRE / April 24, 2018 / Active-Investors.com has just released a free earnings report on Darden Restaurants, Inc. (NYSE: DRI) (“Darden”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DRI. On March 22, 2018, Darden reported financial results for the third quarter ended February 25, 2018. The Company surpassed analysts’ estimates for earnings but missed revenue forecasts for Q3 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Sonic Corp. (NASDAQ: SONC), which also belongs to the Services sector as the Company Darden Restaurants. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Darden Restaurants most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=DRI

Earnings Highlights and Summary

Darden’s total sales reached $2.13 billion for Q3 FY18, reflecting an increase of 13.29% from $1.88 billion in Q3 FY17. The sales growth included 11.3% growth from the addition of 154 Cheddar’s Scratch Kitchen restaurants and 34 other net new restaurants. The reported revenue fell behind analysts’ consensus estimates of $2.15 billion. In the quarter under review, blended same-restaurant sales from Darden’s legacy brands increased 2.0%.

During Q3 FY18, Darden’s total operating costs and expenses were $1.9 billion, 14.90% higher than the $1.65 billion reported in Q3 FY17. The Company’s operating income advanced 1.70% to $233.40 million in the reported quarter from $229.50 in the previous year’s comparable quarter.

Darden’s net earnings from continuing operations was $218.50 million for Q3 FY18, an increase of 31.39% from $166.30 million in Q3 FY17. The Company’s diluted net earnings per share from continuing operations also jumped 31.82% to $1.74 in the quarter under review from $1.32 in the year ago same quarter. Darden’s reported quarter results included debt retirement costs, Cheddar’s integration costs, and benefit from revaluation of deferred tax related to the US tax reform. Excluding these non-recurring items, the Company’s adjusted diluted earnings per share (DEPS) was $1.71 in Q3 FY18, 29.55% higher than $1.32 in Q3 FY17. Adjusted DEPS exceeded analysts’ consensus estimates of $1.64 per share. It must be noted that the quarter marked the 14th consecutive earnings beat for the Company.

Darden Restaurants’ Segment Details

The Olive Garden segment’s net revenues were $1.07 billion in Q3 FY18, an increase of 3.68% from the previous year’s same quarter. This segment’s operating profit was $226.70 million in Q3 FY18, 4.13% higher than the $217.70 million reported in Q3 FY17.

For Q3 FY18, the LongHorn Steakhouse segment’s net revenues advanced 4.26% to $452.80 million on a y-o-y basis. This segment had an operating profit of $89.90 million in Q3 FY18, 5.76% higher than $85 million in Q3 FY17.

During Q3 FY18, the Fine Dining segment’s net revenues surged 6.96% to $164.40 million on a y-o-y basis. This segment’s operating profit was $40.30 million for the quarter under review, 10.71% higher than the $36.40 million reported in the year ago corresponding quarter.

The Other Business segment reported revenues of $438 million in Q3 FY18, an increase of 71.36% on a y-o-y basis. The segment had an operating profit of $65.50 million in the reported quarter, 46.21% higher than $44.80 million in the previous year’s same quarter.

Cash Matters

Darden had cash and cash equivalents of $146.80 million as on February 25, 2018, 37.02% lower than $233.10 million as on May 28, 2017. The Company’s long-term debt was $926.40 million as on February 25, 2018, a decline of 1.09% from $936.60 million as on May 28, 2017.

Darden’s cash flow from operating activities of continuing operations was $751 million for the nine months ending February 25, 2018, an increase of 7.09% from $701.30 million for the nine months ending February 26, 2017. The Company spent $294.90 million on purchases of land, buildings, and equipment in nine months FY18, up 37.80% from $214 million in nine months FY17.

In the quarter under review, Darden issued $300 million of 30-year debt at 4.55%, which replaced $311 million of higher-interest (6.8% and 6.0%) long-dated bonds. Besides, the Company repurchased approximately 0.2 million shares of its common stock for a total cost of $19 million. Darden had approximately $262 million remaining under its $500 million repurchase authorization at the end of Q3 FY18.

Outlook

Darden raised its guidance for fiscal 2018, based on year-to-date results and its expected performance in Q4 FY18. For full year 2018, the Company expects same-restaurant sales growth of approximately 2% and total sales growth of 13%. Darden’s total new restaurant openings for FY18 is expected to reach 40. The Company expects its adjusted DEPS from continuing operations to be $4.75 to $4.80, up from the previous guidance of $4.70 to $4.78.

Darden’s Board of Directors declared a regular quarterly cash dividend of $0.63 per share, payable on May 01, 2018, to shareholders of record at the close of business on April 10, 2018.

Stock Performance Snapshot

April 23, 2018 – At Monday’s closing bell, Darden Restaurants’ stock ended the trading session flat at $91.05.

Volume traded for the day: 1.49 million shares.

Stock performance in the last month – up 5.95%; previous six-month period – up 11.08%; and past twelve-month period – up 8.19%

After yesterday’s close, Darden Restaurants’ market cap was at $11.25 billion.

Price to Earnings (P/E) ratio was at 24.13.

The stock has a dividend yield of 2.77%.

The stock is part of the Services sector, categorized under the Restaurants industry.

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