Post-Earnings Report - Darden Restaurants

LONDON, April 16, 2015 /PRNewswire/ --

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Investor-Edge.com has issued free post-earnings report on Darden Restaurants Inc. (NYSE: DRI). On March 20, 2015, the company reported its financial results for Q3 FY15 (period ended February 22, 2015). Click on http://get.Investor-Edge.com/pdf/?c=Darden%20Restaurants&d=16-Apr-2015&s=DRI to read our free earnings review on Darden Restaurants Inc. (Darden). During Q3 FY15, the company's total sales from continuing operations grew 6.9% Y-o-Y. CEO of Darden, Eugene Lee, stated that the company delivered solid improvement in its financial results for the quarter and attributed it to the hard work Darden's teams are doing to grow same-restaurant sales and control costs. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Darden%20Restaurants&d=16-Apr-2015&s=DRI

Earnings Overview 

During Q3 FY15, Darden's total sales increased to $1.73 billion from $1.62 billion in Q3 FY14. The company's total sales slightly outperformed Bloomberg analysts' forecast of $1.72 billion in Q3 FY15. Furthermore, combined Darden comparable same-restaurant sales for the reported quarter were positive 3.6%.

In Q3 FY15, Darden's Olive Garden's total sales improved 3.0% Y-o-Y to $957 million. LongHorn Steakhouse's total sales increased 11.4% Y-o-Y in Q3 FY15 to $404 million. Moreover, Specialty Restaurants' total sales grew 14.7% Y-o-Y to $367 million in Q3 FY15. Mr. Lee said that the company's strategy of getting back to basics and elevating the food, service, and atmosphere in its restaurants in order to deliver the best possible guest experience is driving these sales and profitability improvements. Free research on DRI can be downloaded in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Darden%20Restaurants&d=16-Apr-2015&s=DRI

For Q3 FY15, Darden's earnings from continuing operations improved to $128.4 million, or $1.01 per diluted share, from $86.6 million, or $0.65 per diluted share, in Q3 FY14. Further, Darden reported net earnings of $133.8 million, or $1.05 per diluted share, in Q3 FY15 compared to $109.7 million, or $0.82 per diluted share, in Q3 FY14. Analysts from Bloomberg had expected net earnings of $102.66 million, or $0.83 per diluted share, in Q3 FY15.

During the reported quarter, Darden's Board of Directors declared a regular quarterly cash dividend of $0.55 per share on the company's outstanding common stock, payable on May 01, 2015 to shareholders of record at the close of business on April 10, 2015.

In its outlook for Q4 FY15, Darden expects earnings per diluted share of $0.91 to $0.94, an increase of between 69% and 74% from Q4 FY14. Further, the company has increased expectations for full-year FY15. Darden now expects annual range for adjusted earnings per diluted share to be between $2.45 and $2.48 (or $1.50 and $1.53 on an unadjusted basis) an increase of between 43% and 45% from FY14, reflecting the impact of the accelerated share repurchase program on annual weighted average share count. This also reflects the expectation that the company's combined U.S. same-restaurant sales growth in FY15 will be 2.0% to 2.5% and the positive $0.05 per share impact of a 53^rd operating week in FY15. Sign up and read the free analyst's notes on DRI at:

http://get.Investor-Edge.com/pdf/?c=Darden%20Restaurants&d=16-Apr-2015&s=DRI

Stock Performance 

On the day of the earnings release, March 20, 2015, Darden's stock gained 2.90% to end the session at $66.75. Since then, the stock has moved both ways. On the last close, Wednesday, April 15, 2015, the company's shares finished 1.25% lower at $67.05. The stock vacillated between $67.04 and $68.30 during the session. A total of 1.18 million shares were traded which was below their three months average volume of 1.49 million. Over the last one month and over the previous three months, the company's shares have gained 6.26% and 14.07%, respectively. Further, the company's shares have surged 38.53% in past one year. Shares in Darden closed above their 50-day and 200-day moving averages of $64.52 and $55.07, respectively. Furthermore, the stock traded at a PE ratio of 37.11 and has a Relative Strength Index (RSI) of 56.28. Visit Investor-Edge and access the latest research on DRI at:

http://get.Investor-Edge.com/pdf/?c=Darden%20Restaurants&d=16-Apr-2015&s=DRI

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 8 corporate insider transactions done by 3 individuals. Between March 24, 2015 and April 07, 2015, a total of 92,729 shares were purchased at an average price of $40.76 per share and for a total value of $3.78 million. During the same period, a total of 85,129 shares, worth $5.93 million, were sold at an average price of $69.63 per share. The following are some of the abovementioned transactions: Bradford C. Richmond, Senior Vice President and Chief Financial Officer at Darden, bought 66,863 shares at an average price of $38.81 per share and disposed an equal number of shares at an average price of $69.69 per share; David R. Lothrop, Senior Vice President and Corporate Controller at Darden, purchased 18,266 shares at an average price of $37.30 per share and sold an equal number of shares at an average price of $69.42 per share; Eugene Lee, bought 7,600 shares at an average price of $66.29 per share. Complimentary in-depth research on DRI is available at:

http://get.Investor-Edge.com/pdf/?c=Darden%20Restaurants&d=16-Apr-2015&s=DRI

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