Darden Restaurants Inc.
shares fell 4% in Thursday trading after the company reported fiscal second-quarter same-restaurant sales below the outlook. Net income totaled $24.7 million, or 20 cents per share, down from $115.6 million, or 92 cents per share, last year. Adjusted EPS of $1.12, which includes adjustments from the termination of a benefit plan, beat the $1.07 FactSet consensus. Sales of $2.06 billion rose from $1.97 billion last year and matched the FactSet consensus. Same-restaurant sales rose 2% with Olive Garden up 1.5%, Longhorn Steakhouse up 6.7% and Seasons 52 down 3.5%. The FactSet guidance was for 2.1% growth. For fiscal 2020, Darden expects sales growth of 5.3% to 6.3%, same-restaurant sales growth of 1% to 2% and adjusted EPS of $6.30 to $6.45. FactSet is guiding for sales of $9.03 billion, implying 6.1% growth, same-restaurant sales growth of 1.6% and EPS of $6.40. Darden shares have gained 16.5% in 2019 while the S&P 500 index
is up 27.3% for the period.
Source: Thanks https://www.marketwatch.com/story/olive-garden-parent-darden-restaurants-stock-slips-after-same-restaurant-sales-fall-short-2019-12-19