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Darden Restaurants, Inc. (DRI)

  • Fri, Mar. 20, 7:15 AM
    • Darden Restaurants (NYSE:DRI) reports a 3.2% rise in comparable-restaurant sales in FQ3 with strength seen across its brands on increased pricing and traffic.
    • Comparable-restaurant growth by brand: Olive Garden +2.2%, Longhorn Steakhouse +5.4%, Yard House +5.4%, The Capital Grille +6.1%, Seasons 52 +5.2%, Bahama Breeze +3.2%, Eddie V's +9.6%.
    • Food and beverage costs +9.3% to $530.7M.
    • SG&A expenses -13% to $134.2M.
    • Guidance: FQ4 EPS of $0.91-$0.94 expected vs. $0.89 consensus.
    • DRI +1.62% premarket to $65.92.
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  • Tue, Feb. 24, 10:53 AM
    • Restaurant stocks are out-performing market averages again as more chains report improved comparable-restaurant sales growth.
    • The read on Q1 is that pricing and traffic trends are strong, despite what some broad measures of overall consumer confidence show.
    • The $2 gas benefit is believed by analysts to have had a greater impact on restaurant spending than other areas of retail.
    • Gainers include Luby's (LUB +4.9%), Cosi (COSI +5.4%), Rave Restaurant Group (RAVE +4.5%), Texas Roadhouse (TXRH +2.4%), Krispy Kreme Dougnuts (KKD +2.8%), Popeyes Louisian Kitchen (PLKI +1.7%), Bob Evans Farms (BOBE +1.1%), Darden Restaurants (DRI +1.4%).
    • Even McDonald's (MCD +0.8%), which trailed the Q4 comp average in the sector by a wide margin, is out ahead of the S&P 500.
    • Previously: Cracker Barrel +4.1% after traffic accelerates and guidance lifted
  • 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
  • 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
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  • 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
  • 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. 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.
  • Sep. 12, 2014, 8:06 AM
    • Darden Restaurants (NYSE:DRI) responds to the transformation plan offered up by Starboard Value this morning by leaning on its recent uptick in traffic trends.
    • The company also maintains some of the Starboard strategies are already being implemented.
    • Naturally, Darden wants shareholders to vote for its board nominees.
    • Darden's Annual Shareholder Meeting is scheduled for October 10.
    • DRI +2.8% premarket
    | 1 Comment
  • Jul. 29, 2014, 9:54 AM
    • A number of restaurants stocks are pushing higher after activist investors get their way at Darden Restaurants (DRI +3.5%) and DineEquity (DIN +6.2%) puts in a solid quarter.
    • In the guessing game of which chain might get the most attention from restless institutional shareholders - Denny's (DENN +4.5%), Bob Evans (BOBE -0.2%), and Ignite Restaurants (IRG +3.5%) have been bantered around the most.
  • Jul. 28, 2014, 5:36 PM
    • Top gainers, as of 5:15 p.m.: CGNX +18.5%. ARWR +7.7%. HLS +7.7%. MAS +5.8%. DRI +4.7%.
    • Top losers, as of 5:15 p.m.: HLF -11.2%. AFOP -10.5%. TTS -10.0%. PCL -3.6%. FOLD -3.3%.
    | 1 Comment
  • Jul. 28, 2014, 5:06 PM
    • Current Independent Lead Director Charles Ledsinger has been appointed as Independent Non-Executive Chairman effective immediately. Otis - a target of activist investors for some time - will stay on as CEO until Dec. 31 of this year or when a replacement can be found. whichever comes earlier.
    • In other governance changes, the board expects to nominate nine of its independet directors for election, leaving three spots for nominees proposed by Starboard Value. The board has also begun settlement discussions with Starboard over the pending proxy contest.
    • DRI +4.3% AH
    • Previously: Darden Restaurants completes Red Lobster sale
  • Jun. 20, 2014, 7:31 AM
    • Darden Restaurants (DRI) falls short of analysts estimates with its FQ4 report as weak traffic trends persists.
    • Same-restaurant growth: Longhorn Steakhouse +2.4%, Specialty Restaurant Group +2.0%, Olive Garden -3.5%, Red Lobster -5.6%.
    • All three restaurant concepts showed higher pricing during the quarter.
    • Total restaurant labor costs +2.6% to $525.6M.
    • DRI -3.1% premarket
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  • May 16, 2014, 8:32 AM
    • It's a see-saw early session for Darden Restaurants (DRI) following news the company will sell Red Lobster for $2.1B.
    • The company is taking the unusual measure of funneling the proceeds back to buybacks and debt retirement which is a tip-off to some that more dramatic changes are on the way.
    • The deal price seems a bit low to some restaurant industry analysts, although the sale comes amid sluggish traffic patterns at Red Lobster. There's also the difficulty of uncoupling the combined Red Lobster-Olive Garden units.
    • What to watch: Darden CEO Clarence Otis has been the target of activist investors and analysts for quite a while on accusations of mismanagement. If early reaction is any indication, Otis is still firmly on the hot seat.
    • DRI -1.3% premarket
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  • Dec. 19, 2013, 9:21 AM
    • Shares of Darden Restaurants (DRI) are putting in a volatile premarket session as investors digest lackluster same-restaurant sales, weak guidance, and the planned separation of Red Lobster from the mother ship.
    • The quick analyst reaction to the move by the company to shed Red Lobster in order to "enhance" shareholder value leans to the skeptical side: 1) The action comes late and could only draw mild P-E interest. 2) The new DRI will be 60% Olive Garden - a chain which still needs a lot of work to be done on it to reverse momentum. The question is how? Capex spending is being cut with management tied to a healthy dividend payout.
    | 1 Comment
  • Sep. 20, 2013, 7:50 AM
    • Darden Restaurants (DRI) announces that its Chief Operating Officer, Drew Madsen, will retire at the end of FQ2.
    • DRO -3.4% premarket after missing estimates with its FQ1 report.
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  • Feb. 13, 2013, 1:46 PM
    Restaurant stocks underperform broad market indexes after margin pressure at Buffalo Wild Wings and a dour industry outlook from AlixPartners sets a negative tone. Notable decliners: BWLD -5.4%, BJRI -3.7%, CAKE -2.5%, EAT -2.5%, DRI -2.2%, MCD -1.4%.
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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