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Darden Restaurants, Inc. (DRI)

- NYSE
  • Dec. 24, 2014, 9:57 AM
    • The restaurant industry will run up against soft comps in January and February due to last year's winter storms which were much worse than normal.
    • Restaurant same-store sales will rise just over 2% for the full year, according to an estimate from the co-founder of the NRN-MillerPulse tracking survey.
    • Technomic sees a 3% growth in restaurant comps in 2015, while Fitch Ratings has an outlook for 2% to 3%.
    • On the cost side, commodity prices for chicken, cheese, wheat, and pork are all expected to moderate. However, beef prices are seen increasing 4% to 8%.
    • Minimum wage increases in many state kick in on January 1 which could impact the bottom line for many chains.
    • Fresh IPOs, concept acquisitions, and leveraged buyouts care expected to be major themes in 2015, according to analysts.
    • CEOs on the hot seat include Don Thompson at McDonald's (NYSE:MCD) and Nigel Travis at Dunkin' Brands (NASDAQ:DNKN).
    • Restaurant stocks: CAKE, CBRL, CMG, DPZ, DRI, EAT, JACK, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATH, LUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, PLKI, LOCO, YUM, KKD, BOBE, TAST, GTIM, FRSH, COSI, FRS, PBPB, FRGI, QSR.
    | 18 Comments
  • Dec. 16, 2014, 4:34 PM
    • Guidance: Fiscal 2015 adjusted EPS is expected to increase 32-35% from 2014 to $2.25-$2.30 per share (previous bottom end was $2.22).
    • Buybacks: In FQ2, company took receipt of about 8.6M shares as first installment of the $500M accelerated share repurchase program. Since quarter's end, company has taken receipt of another 1.3M shares.
    • Turning to FQ2 operations, comp store sales: Olive Garden +0.5%, LongHorn Steakhouse +2.6%, The Capital Grille +5%, Eddie V's +4.9%, Yard House +3.7%, Seasons 52 +1.2%, Bahama Breeze -0.6%.
    • Previously: Darden Restaurants beats by $0.01, beats on revenue (Dec. 16, 2014)
    • DRI +2% after hours
    | 2 Comments
  • Dec. 16, 2014, 4:19 PM
    • Darden Restaurants (NYSE:DRI) declares $0.55/share quarterly dividend, in line with previous.
    • Forward yield 3.93%
    • Payable Feb. 2; for shareholders of record Jan. 9; ex-div Jan. 7.
    | Comment!
  • Dec. 16, 2014, 4:12 PM
    • Darden Restaurants (NYSE:DRI): FQ2 EPS of $0.28 beats by $0.01.
    • Revenue of $1.56B beats by $10M.
    • Shares +1.77%.
    • Press Release
    | Comment!
  • Dec. 15, 2014, 5:30 PM
  • Dec. 1, 2014, 3:30 PM
    | Comment!
  • Nov. 29, 2014, 10:29 AM
    • Analysts with Gasbuddy.com predict some gas stations in the U.S. will offer $2 per gallon gas by Christmas.
    • The last time the average price of gas in the U.S. was below $2 was in March of 2009.
    • Forecasts from economists vary widely on the overall gas benefit to consumers for Q4. The high end from the group is an outlook of $300 per household, while the low end is closer to $100.
    • Most analysts see an immediate lift for retail chains with large distribution channels. Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST), Dollar General (NYSE:DG), Family Dollar (NYSE:FDO), Dollar Tree (NASDAQ:DLTR), Big Lots (NYSE:BIG), and Five Below (NASDAQ:FIVE) come to mind.
    • Airline stocks (JBLU, DAL, UAL, LUV, AAL, RJET, ALK, HA, ALGT, VA) have already ripped strong gains off the OPEC news, although some see even more long-term upside as forward fuel hedges get reworked.
    • A sustained period of low gas prices should lift restaurant stocks  (CAKE, CBRL, CMG, DNKN, DPZ, DRI, EAT, JACK, MCD, PNRA, RRGB, RT, SBUX, SONC, WEN, BWLD, THI, BDL, NATHLUB, BKW, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN) say some analysts.
    • The gaming sector is (CZR, PNK, BYD, ISLE, CNTY, MCRI, MGM, NYNY) also an off-the-radar pick to bounce.
    | 146 Comments
  • Nov. 18, 2014, 4:44 PM
    • CFO for the last eight years, Brad Richmond is out, effective March 2015, or sooner if a successor is found. Also exiting are Chief Human Resources Officer Daisy Ng and SVP Government and Community Affairs Bob McAdam.
    • In addition to the management changes, Darden (NYSE:DRI) is streamlining support staff, affecting (cutting) about 60 employees. Another 25 open positions will be eliminated as well.
    • In order to provide "greater line of sight for restaurant leadership teams," the company is eliminating one layer of field operations supervision for Olive Garden and LongHorn.
    • Finally, Darden will shut down its aviation department, ceasing flight operations immediately and putting its aircraft on the block.
    • Darden anticipates incurring one-time charges in FQ2 thanks to these changes.
    • Source: Press Release
    • Shares +2% after-hours
    | 3 Comments
  • Nov. 18, 2014, 3:24 PM
    | Comment!
  • Nov. 11, 2014, 7:47 AM
    • KeyCorp upgrades Darden Restaurants (NYSE:DRI) to a Buy rating from Hold.
    • The investment firm thinks the overhaul underway at Darden sparked by Starboard Value's boardroom coup will increase shareholder value.
    • DRI +0.2% premarket.
    | 1 Comment
  • Oct. 22, 2014, 12:01 PM
    | Comment!
  • Oct. 16, 2014, 9:51 AM
    • Darden Restaurants (DRI -0.1%) reappoints former director Bill Simon back to its board of directors.
    • Simon is well-known in the retail world after serving as the CEO of Wal-Mart U.S.
    • Starboard Value backed the appointment.
    | Comment!
  • Oct. 14, 2014, 9:43 AM
    • Darden Restaurants (DRI +1.6%) says its new Starboard-infused board has selected Jeffrey Smith as a non-executive Chairman of the Board.
    • Smith is the CEO and Chief Investment Officer at Starboard.
    • Gene Lee will be the interim CEO to replace Clarence Otis, effective immediately.
    • Lee previously served as the company's COO.
    | 2 Comments
  • Oct. 10, 2014, 9:41 AM
    • Starboard Value has won all 12 seats on the Darden Restaurants (NYSE:DRI) board of directors, according to the Orlando Business Journal.
    • Shares of DRI are up 1.7% after being halted temporarily.
    | 2 Comments
  • Oct. 10, 2014, 9:22 AM
    • The votes are being counted this morning at the annual meeting of Darden Restaurants (NYSE:DRI) shareholders as investors wait to see if Starboard Value gains control of the restaurant chain operator.
    • In an interesting twist, Chairman Charles Ledsinger is giving the presentation for the company instead of CEO Clarence Otis who is MIA, according to an Orlando Sentinel reporter.
    • Most analysts thinks Starboard will triumph in the proxy battle.
    | 2 Comments
  • Oct. 9, 2014, 8:21 AM
    • Shareholders of Darden Restaurants (NYSE:DRI) will get their say after hearing the restaurant chain operator and Starboard Value trade barbs for close to a year.
    • A vote on new members of the board of directors is set for Friday at Darden's annual meeting.
    • KeyBanc forecasts a "high probability" that Starboard nominees will win a majority of the seats to give the hedge fund control of the board.
    • Full Starboard Value thesis on transforming Darden (.pdf)
    | 1 Comment
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Company Description
Darden Restaurants Inc owns and operates dining restaurants. Some of its trade names are Red Lobster, Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, Eddie V's Prime Seafood, Wildfish Seafood Grille and Yard House.
Sector: Services
Industry: Restaurants
Country: United States