Darden Restaurants Earnings: DRI Stock Slips 6% on Slumping Sales

DRI just missed revenue estimates

Darden Restaurants (NYSE:DRI) earnings for the restaurant company’s fiscal second quarter of 2020 have DRI stock falling on Thursday. This is despite its adjusted earnings per share of $1.12, which is above Wall Street’s estimate of $1.07. The problem stems from revenue of $2.056 billion. This is just below analysts’ estimates of $2.060 billion.

Darden Restaurants Earnings: DRI Stock Slips 6% on Slumping Sales
Source: Sundry Photography / Shutterstock.com

Here’s what else is worth mentioning from the most recent Darden Restaurants earnings report.

  • Adjusted per-share earnings are up 21.74% from 92 cents in the fiscal second quarter of 2019.
  • Revenue comes in 4.57% higher than the $1.97 billion from the same time last year.
  • The Darden Restaurants earnings report also includes an operating income of $160.20 million.
  • That’s an 8.17% increase from its operating income of $148.10 million in the same period of the year prior.
  • Net income of $24.70 million is 78.63% lower YoY than $115.60 million.

Darden Restaurants CEO Gene Lee has this to say about the DRI stock earnings report.

“We had a good quarter with continued same-restaurant sales growth outpacing the casual dining industry benchmarks, especially at LongHorn. We continue to see that consumers are willing to visit brands with compelling value and strong guest experiences.”

The Darden Restaurants earnings report also includes its outlook for fiscal 2020. This has it expecting adjusted EPS ranging from $6.30 to $6.45. The midpoint of this guidance is below Wall Street’s estimate of $6.40 for the fiscal year.

DRI stock was down 5.92% as of Thursday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2019/12/darden-restaurants-earnings-drop-dri-stock/.

©2020 InvestorPlace Media, LLC