Continue reading Darden posts fourth-quarter earnings, can it boost the shares?

Darden posts fourth-quarter earnings, can it boost the shares? originally appeared on BloggingStocks on Wed, 24 Jun 2009 10:30:00 EST. Please see our terms for use of feeds.

Darden Restaurants (NYSE: DRI - option chain) shares are headed higher today after the company reported Q3 earnings yesterday after the close of 78 cents per share, which beat estimates of only 68 cents. Also, DRI raised its outlook for 2009 earnings as well.

The markets are taking this news today as some kind of a sign that the consumer is sticking with the casual dining atmosphere and rewarding DRI stock accordingly. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DRI.

DRI opened this morning at $33.52. So far today the stock has hit a low of $33.12 and a high of $35.64. As of 11:20, DRI is trading at $34.94, up 5.04 (16.9%). The chart for DRI looks neutral and S&P gives DRI a 3 STARS (out of 5) hold ranking.

Continue reading Darden Restaurants (DRI) Q3 earnings surprise

Darden Restaurants (DRI) Q3 earnings surprise originally appeared on BloggingStocks on Wed, 18 Mar 2009 12:35:00 EST. Please see our terms for use of feeds.

Darden Restaurants (NYSE: DRI) operates about 1,700 casual dining restaurants in the United States and Canada. Its Red Lobster (seafood), Olive Garden (Italian cuisine), LongHorn Steakhouse (steak), Bahama Breeze (Caribbean items) and Capital Grille (steak) chains cater to families, with mid-priced menu items and generally suburban locations. A small group of Seasons 52 restaurants feature a casual grill and wine bar concept. Brinker International (NYSE: EAT) and Chipotle Mexican Grill (NYSE: CMG) are competitors.

The company pleased investors last week, when it reported fiscal Q3 EPS of 85 cents and revenues of $1.81 billion. Analysts had been looking for 82 cents and $1.80 billion. Management also guided FY08 EPS to about $2.71-$2.76 ($2.72 consensus) and FY08 revenues to about $6.63-$6.68 billion ($6.64B consensus). Raymond James subsequently upgraded the shares to "strong buy".

Continue reading Darden Restaurants (DRI): Shares defining bullish 'flag' pattern

Darden Restaurants (DRI): Shares defining bullish 'flag' pattern originally appeared on BloggingStocks on Wed, 26 Mar 2008 11:00:00 EST. Please see our terms for use of feeds.

Darden Restaurants (NYSE: DRI) operates about 1,700 casual dining restaurants in the United States and Canada. Its Red Lobster (seafood), Olive Garden (Italian cuisine), LongHorn Steakhouse (steak), Bahama Breeze (Caribbean items) and Capital Grille (steak) chains cater to families, with mid-priced menu items and generally suburban locations. A small group of Seasons 52 restaurants feature a casual grill and wine bar concept. Brinker International (NYSE: EAT) and Chipotle Mexican Grill (NYSE: CMG) are competitors.

The company pleased investors last week, when it guided fiscal Q3 EPS to 83-85 cents. Analysts had been looking for 77 cents. Management also said it expected Y08 EPS of about $2.71-$2.76 ($2.66 consensus).

Continue reading Darden Restaurants (DRI): Shares defining bullish 'pennant' pattern

Darden Restaurants (DRI): Shares defining bullish 'pennant' pattern originally appeared on BloggingStocks on Tue, 19 Feb 2008 15:02:00 EST. Please see our terms for use of feeds.

For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $40 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 6.3% return in 7 months as long as DRI is below $40 at July expiration. Darden would have to rise by more than 32% before we would start to lose money.

Continue reading Darden Restaurants (DRI) takes it on the chin

Darden Restaurants (DRI) takes it on the chin originally appeared on BloggingStocks on Wed, 19 Dec 2007 12:50:00 EST. Please see our terms for use of feeds.

An Orlando outfit became the number one casual dining operator in North America by offering multiple dining experiences to the critical family crowd.

Darden Restaurants (NYSE: DRI) operates more than 1,300 casual dining restaurants in the United States and Canada. Its Red Lobster (seafood), Olive Garden (Italian cuisine) and Bahama Breeze (Caribbean items) chains cater to families, with mid-priced menu items and suburban locations. A small group of Seasons 52 restaurants feature a casual grill and wine bar concept. Brinker International (NYSE: EAT) and Chipotle Mexican Grill (NYSE: CMG) are competitors.

The company pleased investors last month, when it reported fiscal Q1 EPS of 73 cents and revenues of $1.47 billion. Analysts had been expecting 70 cents and $1.45 billion. Management also guided FY08 revenues to about $6.25-6.31 billion, versus consensus of $6.08 billion. The company confirmed that it plans to buy back $125-175 million of its common stock in FY08.

Continue reading Darden Restaurants (DRI): What's for dinner?

Darden Restaurants (DRI): What's for dinner? originally appeared on BloggingStocks on Wed, 03 Oct 2007 14:40:00 EST. Please see our terms for use of feeds.

Darden posts disappointing results originally appeared on BloggingStocks on Wed, 20 Jun 2007 14:24:00 EST. Please see our terms for use of feeds.

Darden Restaurants (NYSE: DRI), owners of Red Lobster, Olive Garden, Bahama Breeze and Smokey Bones, posted 3Q 2006 earnings recently. In its press release, Darden Restaurants management claims record diluted net earnings of 0.72 per share, a 7% increase over 3Q 2005. Net sales increased 4.7% to $1.54 billion.

Sounds good so far. But Darden bought back 4.3 million of its own shares this quarter. This dilutes the number of shares outstanding so the 7% increase in earnings per share is actually closer to 1.5%. Total earnings per share budged up a little bit to $106.4 million for the quarter.

Darden's press release trumpets the fact that Olive Garden recorded its 50th consecutive quarter of same-restaurant sales growth. This quarter sales were up 1%, just barely enough to keep the streak alive. 3Q revenues were up to $722.4 million, in part due to a net increase of 28 new Olive Garden locations.

Same-restaurant 3Q sales were up 4.6% at Red Lobster, with overall sales up to $684.2 million. 3Q sales were down less than 1% at Bahama Breeze, to $38 million. Likewise, 3Q sales were down 1.5% to $87.2 million at Smokey Bones.

Darden management forecasts very modest sales growth of 2-3% for FY 2007, while opening 35-40 new locations throughout the year.

Darden Restaurants 3Q earnings results originally appeared on BloggingStocks on Wed, 28 Mar 2007 16:15:00 EST. Please see our terms for use of feeds.

Morgan Stanley (NYSE: MS)

Earnings watch for Wednesday: MS, FDX and DRI originally appeared on BloggingStocks on Tue, 20 Mar 2007 17:24:00 EST. Please see our terms for use of feeds.

• JP Morgan upgraded Circuit City Stores Inc. (NYSE:CC) to Overweight from Neutral, telling clients it is taking advantage of more realistic expectations and valuation; they also see some positive catalysts in 2008 that may include product introductions, such as Microsoft Corp.'s (NASDAQ:MSFT) Vista and the availability of the PS3 from Sony Corp. (NYSE:SNE) and Nintendo Ltd.'s (OTC:NTDOY) Wii.
• Credit Suisse upgraded Best Buy Co. Inc. (NYSE:BBY) to Outperform from Neutral with a $59 target, telling clients the focus on the electronics retailer has moved too much into the slight shortfall of Q3, which undervalues the solid growth through 2007 as well as the strong balance sheet the company enjoys.

• Darden Restaurants Inc. (NYSE:DRI) was upgraded to Market Perform from Underperform at Raymond James.
• Accenture Ltd. (NYSE:ACN) was upgraded to Sector Perform from Underperform at RBC Capital Markets, and believes that strong demand for consulting, solid outsourcing visibility, and strong financial fundamentals are likely to offset the negative impact of offshore labor cannibalization in the near-term; Baird also upgraded Accenture, to Outperform from Neutral with a $39 target, following strong first quarter earnings and guidance.
• Deutsche Bank is positive on Publicis Groupe (NYSE:PUB) acquisition of Digitas Inc. (NASDAQ:DTAS) and upgraded the acquirer to Buy from Hold.

Analyst upgrades 12-21-06: CC, BBY upgraded originally appeared on BloggingStocks on Thu, 21 Dec 2006 11:04:00 EST. Please see our terms for use of feeds.

Before the bell 12-19-06: Oracle, Asia depress stock futures, waiting for PPI originally appeared on BloggingStocks on Tue, 19 Dec 2006 07:48:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: Nokia (NOK) and selected restaurants topped today's extensive list of downgrades:

• Due to slowing in the wireless sector, Oppenheimer downgraded shares of Nokia Corp. (NYSE:NOK) to Neutral from Buy, following Texas Instruments' (NYSE:TXN) lowered guidance;
• Citing valuations and a deteriorating outlook, Buckingham downgraded shares of Darden Restaurants Inc (NYSE:DRI) and Wendy's Inernational Inc. (NYSE:WEN) to Neutral from Accumulate, as well as Yum! Brands Inc. (NYSE:YUM) and Jack in the Box Inc. (NYSE:JBX) to Underperform from Neutral.

OTHER DOWNGRADES:

• JP Morgan downgraded Micron Technology Inc. (NYSE:MU) to Neutral from Overweight based on concerns of growing inventory levels and a weaker-than-expected flash market in the first half of 2007.
• Citigroup Inc. (NYSE:C) was removed from Sandler's Focus List.
• Calyon downgraded Johnson Controls Inc. (NYSE:JCI) to Neutral from Buy with an $85 target, citing valuation and the weakening economy.
• RBC Capital Markets downgraded Alcoa Inc. (NYSE:AA) to Underperform from Sector Perform on valuation.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst downgrades 12-12-06: Nokia, Wendy's, Yum! originally appeared on BloggingStocks on Tue, 12 Dec 2006 10:48:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: Microsoft (MSFT) and Darden Restaurants (DRI) top today's list of upgrades.

• Credit Suisse upgraded Microsoft Corp. (NASDAQ:MSFT) to "Outperform" from Neutral, citing the company's strengthening market position in digital entertainment and potential revenue upside.
• JP Morgan upgraded Darden Restaurants, Inc. (NYSE:DRI) to Neutral from Underweight, reflecting lower commodity costs and solid performance in Olive Garden.

OTHER UPGRADES:

• Triad Hospitals, Inc. (NYSE:TRI) was upgraded from Reduce to Buy at UBS; the upgrade is based on the increased confidence Triad will implement strategic changes to increase shareholder value.
• Morgan Stanley expected a rebound in the ICD market and upgraded St. Jude Medical, Inc. (NYSE:STJ) to Overweight from Equal Weight.
• SafeNet Inc (NASDAQ:SFNT) was added to Stifel Nicolaus' Select List with a $31 target. SafeNet is said to be making progress with their stock option issues and they find the valuation to be attractive.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst upgrades 11-20-06: Microsoft upgraded to Outperform originally appeared on BloggingStocks on Mon, 20 Nov 2006 11:11:00 EST. Please see our terms for use of feeds.

Cramer is hungry: YUM, McDonald's, Darden good, Phelps Dodge to $100 originally appeared on BloggingStocks on Thu, 12 Oct 2006 15:12:00 EST. Please see our terms for use of feeds.