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Darden Restaurants, Inc.

6/19/2013, 6:40 PM ET

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Wednesday, June 19, 10:03 AM "Either management's initiatives begin to gain traction [or] pressure builds for more significant change," Deutsche Bank's Greg Poole says of Darden Restaurants (DRI +0.5%), adding that either way the "risk-reward seems skewed to the upside." Poole doesn't necessarily like the valuation though (PT $54) and says it would be preferable to get in at a lower price. Comment!
Wednesday, April 17, 1:03 PM Red Lobster will reverse a policy instituted last year which saw new servers hired at a lower pay scale and increased the number of tables each server handled at a time in order to cut costs for Darden Restaurants (DRI -1.5%). The company admits customer service complaints rose to a level that it couldn't ignore any longer. 6 Comments [Consumer]
Friday, April 12, 9:51 AM Restaurant sales trends improved in March but remain "fragile," according to a new report from Black Box Intelligence. The sector saw a same-store sales increase of 0.5% during the month compared to February’s decline of 5% - while traffic decreased 2% compared to a 4.2% drop in February. Comment! [Consumer]
Wednesday, April 10, 2:17 PM Restaurant visits by parties of adults grew by 1% last year to end four consecutive declines in the category but visits with children in tow showed flat growth once again, according to tracking from the NPD Group. A tripping point for the sector has been the lack of growth in visits by parties with kids. What to watch: Analysts see increased promotional activity sneaking in on the industry's margins. 5 Comments [Consumer]
Monday, March 25, 2:30 PM Restaurant blues: The consensus estimate of economists for consumer spending growth in February is for a 0.6% gain after the measure rose 0.2% in January but don't expect restaurants to report strong numbers for Q1. Inside tracking and guidance warnings from key companies indicate that the sector is feeling the pressure of higher payroll taxes. Major chains also face a tough period of comparable with last year's winter much milder on average in the U.S. 4 Comments [Consumer]
Monday, March 25, 9:58 AM Stephens raises its rating on Darden Restaurants (DRI +2%) to Overweight from Equal Weight in the wake of a FQ3 report from the restaurant operator that left some room for optimism. The company also received a boost from Barron's with a weekend article concluding that the Olive Garden and Red Lobster chains have a "workable recipe" to improve profitability. Comment! [Consumer]
Friday, March 22, 9:23 AM Darden Restaurants (DRI) declares $0.50/share quarterly dividend, in line with previous. Forward yield 4.08%. For shareholders of record Apr. 10. Payable May 01. Ex-div date Apr. 08. (PR) Comment! [Dividends]
Friday, March 22, 9:22 AM Heard during Darden Restaurants' (DRI) earnings call: 1) Promotional activity kept the average check price flat during the past quarter at chains. Execs says checks dynamics should change with traffic improving at all three chains. 2) The company admits they have no visibility on the impact of delayed refund checks during Q1, but says a definite impact from weather was felt in certain regions. 3) Investors can expect a minor dividend increase from the company. 4) Beyond affordability measures, the company may look to move push fresher and lighter fare to draw traffic. DRI -2.0% premarket. (webcast) Comment! [Consumer]
Friday, March 22, 7:10 AM More on Darden Restaurants' (DRI) FQ3: Same-restaurant sales fell at LongHorn Steakhouse (-1.6%), Olive Garden (-4.1%), and Red Lobster (-6.6%) as winter weather took its toll on store traffic. The addition of 105 new restaurants and the acquisition of Yardhouse is expected to help total sales grow at a 6% to 7% clip for the full fiscal year. (PR) 1 Comment [Consumer, Earnings]
Friday, March 22, 7:03 AM Darden Restaurants (DRI): FQ3 EPS of $1.02 beats by $0.01. Revenue of $2.26B (+4.6% Y/Y) in-line. (PR) Comment! [Earnings, Breaking News, Consumer]
Friday, March 22, 12:05 AM Notable earnings before Friday’s open: DRI, TIF Comment! [Earnings]
Thursday, March 21, 5:30 PM Notable earnings before Friday’s open: DRI, TIF Comment! [Earnings]
Thursday, March 7, 2:25 PM S&P revises its outlook on Darden Restaurants (DRI +0.1%) to Negative from Stable. Comment! [Consumer]
Thursday, March 7, 8:37 AM Retail analyst Howard Penney has his eye on the increasing promotional activity from Darden Restaurants (DRI) with its Olive Garden chain (2 for $25 coupon) as the restaurant operator looks for ways to boost visitors. The catch? If the company gives up margins so easily without boosting traffic nicely it will be spinning its wheels. (Previous: DRI warns on promotions) Comment! [Consumer]
Friday, February 22, 9:50 AM An unusual step from Darden Restaurants (DRI +1.3%): The company released a video message from CEO Clarence Otis. Mainly a rally-the-troops message, the key lines are on the threat of promotional activity in the sector. "While we can’t control what competitors do, we can change our approach to get one step ahead. Look for us to do more of that in the future." 1 Comment [Consumer]
Friday, February 22, 8:50 AM The restaurant sector is on watch after a pre-earnings warning from Darden Restaurants (DRI) and a harsh downgrade on Wendy's (WEN) sets a negative tone. The picture being painted for 2013 is starting to get pretty consistent - margin pain and soft traffic trends. Other things to watch in 2013 for the sector: 1) The impact of higher payroll taxes. 2) The coming costs of the Affordable Care Act. 3) The push to raise the minimum wage. 4) Which chains can succeed in China and India? 5 Comments [Consumer]