Full service restaurant chain operator Darden Restaurants, Inc. (DRI) on Tuesday provided a much weaker-than-expected fiscal second quarter profit outlook and lowered its full-year estimates, sending its shares tumbling lower in premarket trading.
The Orlando-based operator of Red Lobster and Olive Garden restaurants forecast second earnings from continuing operations of 25 to 26 cents per share, which would badly miss Wall Street’s view of 47 cents. Darden’s estimate includes a 5 cent per share negative impact from closing costs associated with its acquisition of the Yard House bar/restaurant chain, as well as a 1 cent impact from Superstorm Sandy.
DRI also expects second quarter same-store sales to fall 2.7% across its properties.
For the full year, the company lowered its earnings outlook to a range of $3.29 to $3.49 per share. Analysts are currently looking for $3.88 per share for the year.
Darden Restaurants shares fell $4.52, or -8.6%, in premarket trading Tuesday.
The Bottom Line
Shares of Darden Restaurants (DRI) have a 3.82% dividend yield, based on last night’s closing stock price of $52.42. The stock has technical support in the $46-$48 price area. If the shares can firm up, we see overhead resistance around the $54 price level.
Darden Restaurants, Inc. (DRI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here