Seeking Alpha
Long/short equity, contrarian, short-term horizon, dividend investing
Profile| Send Message|
( followers)  

Darden Restaurants, Inc. (NYSE:DRI) is scheduled to release last fiscal quarter's results after the closing bell on December 16, 2011. DRI trades an average of 2.7 million shares per day.

52-Week High: $53.81

52-Week Low: $40.69

Book Value: $14.44

Float Short: 7.74%

On average, 27 analysts are expecting a drop of $-0.35 in earnings per share compared with last quarter's results of $0.78. The estimated mean earnings are $0.43 per share. Analyst estimates range between $0.41 and $0.55 per share.

The current trailing twelve months (ttm) P/E ratio is 12.8. The forward P/E ratio is 12.

Shareholders have gone through some recent pain with the recent earnings warning the company provided. Shares gapped down from mid $47 to the current trading price of mid $43.

Forward guidance and the conference call will likely be listened to carefully as management will have many pointed questions to answer.

Preliminary Fiscal 2012 September, October and November U.S. Same-Restaurant Sales Results

Darden reported preliminary U.S. same-restaurant sales for the fiscal months of September, October and November as follows:

Olive Garden

September

October*

November*

Same-Restaurant Sales

-0.8%

-1.5%

-5.7%

Same-Restaurant Traffic

-0.6%

0.8%

-3.3%

Pricing

1.8%

1.7%

1.7%

Menu-mix

-1.9%

-4.0%

-4.1%

Red Lobster

September

October*

November*

Same-Restaurant Sales

12.8%

3.0%

2.8%

Same-Restaurant Traffic

11.4%

-0.8%

-1.5%

Pricing

2.9%

2.9%

2.9%

Menu-mix

-1.5%

0.9%

1.4%

LongHorn Steakhouse

September

October*

November*

Same-Restaurant Sales

5.7%

3.2%

9.1%

Same-Restaurant Traffic

5.9%

2.6%

8.7%

Pricing

2.1%

2.2%

2.3%

Menu-mix

-2.3%

-1.6%

-1.9%

The company has rising year-over-year revenue of $7.50 billion for 2011 vs. $7.11 billion for 2010. The bottom line has rising year-over-year earnings of $476.30 million for 2011 vs. $404.50 million for 2010.The company's earnings before interest and taxes are rising with a year-over-year EBIT of $741.20 million for 2011 vs. $637.50 million for 2010. Rising revenue along with rising earnings is a very good sign and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue.

(Click charts to expand)

paid2trade.com revenue gross bar chart for DRI

Gross reported revenue compared with the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Aug-11 $ 1.93 B $ 1.94 B $ 12.31 M 0.64%
May-11 $ 1.99 B $ 1.99 B $ -0.74 M -0.04%
Feb-11 $ 1.97 B $ 1.98 B $ 7.16 M 0.36%
Nov-10 $ 1.73 B $ 1.73 B $ -2.46 M -0.14%
Aug-10 $ 1.82 B $ 1.81 B $ -17.35 M -0.95%

M = millions, B = billions

Differences are rounded. (Some one-time items are often excluded in reported EPS)

paid2trade.com Quarterly Estimates And Actual EPS results DRI

Reported earnings per share compared with the mean estimate. Differences are rounded.

The total short interest number of shares for DRI

paid2trade.com short interest tool. The total short interest number of shares for DRI

The number of days to cover short interest based on average daily trading volume for DRI.

paid2trade.com number of days to cover short interest based on average daily trading volume for DRI

Thank you for reading my article. Please also feel free to share your thoughts and comments.


Disclosure: I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.

Source: Earnings Preview: Darden Restaurants Reports Q2 Results Friday