The company reported revenue of $2.13 billion for its fiscal first quarter of the year. This is a 3.5% increase over the company’s revenue of $2.06 billion reported in the same period of the year prior. However, it was bad news for DRI stock by just missing Wall Street’s revenue estimate of $2.14 billion.
Behind the Darden Restaurants revenue for its fiscal first quarter are mixed same-store sales. This includes Olive Garden being up 2.2%, LongHorn Steakhouse up 2.6%, The Capital Grille up 1.5% and Eddie V’s up 1.2%. On the other side we have Cheddar’s Scratch Kitchen down 5.4%, Yard House down 1.9%, Seasons 52 down 4.2% and Bahama Breeze also down 4.2%.
Another possible negative dragging down the Darden Restaurants report is its outlook for the fiscal full year of 2020. This has it expecting revenue to increase between 5.3% and 6.3% from its $8.51 billion in fiscal 2019. Wall Street is looking for revenue of $9.05 billion for the year, which is just above a 6.3% increase.
Despite the miss, Darden Restaurants’ earnings report revealed a few bright points. Among these are diluted per-share earnings of $1.38 for the its fiscal first quarter of 2020. This is above analysts’ earnings per share estimate of $1.36 for the quarter.
Darden Restaurants earnings includes an EPS outlook of $6.30 to $6.45 for the fiscal full year. The mid-point of this range falls shy of Wall Street’s estimates of $6.40 in fiscal 2020.
DRI stock was down 4.5% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.