Darden Restaurants Earnings Preview
Investors are gearing up for another solid earnings performance from Darden Restaurants. Darden is expected to report their fiscal fourth quarter 2010 results after the market closes on Wednesday, June 23.
Darden owns the popular Olive Garden and Red Lobster restaurants and is already benefiting as improving economic conditions are resulting in higher store traffic.
Last quarter, Darden reported earnings results that were $.03 above Wall Street’s consensus estimates. That was the sixth consecutive quarter that Darden exceeded Wall Street’s earnings expectations. DRI shares climbed 2.3% following the positive earnings report.
The current Wall Street consensus estimates are for revenues of $1.89 billion and EPS of $.88. This would imply a 4% decline in revenues over last year’s $1.98 billion. And a 2% decline in earnings over the $.90 per share earned in the previous year.
In 2010, Darden’s shares have jumped 27% and have easily outperformed the S&P 500’s flat performance. Last year, Darden gained 24% as the stock performed inline with the 24% gain in the S&P 500.
Darden’s stock is currently trading at 14x consensus 2011 EPS estimates. We would expect Darden’s shares to appreciate higher following a positive earnings report.