Zacks reiterated their neutral rating on shares of Darden Restaurants (NYSE:DRI) in a research report sent to investors on Thursday morning, AnalystRatingsNetwork.com reports. The firm currently has a $49.00 price target on the stock.
Zacks’ analyst wrote, “Darden’s first-quarter fiscal 2014 earnings per share missed the Zacks Consensus Estimate by nearly 23.2% and the year-ago level by 37.6%. Margin shortfall and soft revenues hurt earnings during the quarter. Although its total revenue grew 6.1% year over year, it fell shy of the Zacks Consensus Estimate. Underperformance in two of its core brands — Red Lobster and Olive Garden — led to the soft sales in the quarter. Comps were positive at the newly acquired Eddie V while it declined at the other acquired unit Yard House. Despite the unenthusiastic first-quarter results, we are positive on Darden’s diversified brand portfolio that provides sales diversification and cost synergies. Also, Darden’s SRG brand has evolved over the last couple of quarters. Lastly, increasing shareholder value irrespective of economic ups and downs is another tailwind for the stock. Hence, we remain Neutral on the stock.”
Zacks has also taken action a number of other consumer discretionary stocks recently. The firm upgraded shares of Red Robin Gourmet Burgers Inc. from a neutral rating to an outperform rating. The firm now has a $88.00 price target on that stock. Also, Zacks downgraded shares of Jack in the Box Inc. from an outperform rating to a neutral rating. Their analysts now have a $45.60 price target on that stock. Finally, Zacks downgraded shares of Multimedia Games Holding Co. Inc. from an outperform rating to a neutral rating. Their analysts now have a $43.00 price target on that stock.
Shares of Darden Restaurants (NYSE:DRI) opened at 46.72 on Thursday. Darden Restaurants has a one year low of $44.11 and a one year high of $55.90. The stock’s 50-day moving average is $47.21 and its 200-day moving average is $50.03. The company has a market cap of $6.100 billion and a P/E ratio of 16.60.
Darden Restaurants (NYSE:DRI) last issued its quarterly earnings data on Friday, September 20th. The company reported $0.53 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.70 by $0.17. The company had revenue of $2.16 billion for the quarter, compared to the consensus estimate of $2.20 billion. During the same quarter in the prior year, the company posted $0.85 earnings per share. The company’s quarterly revenue was up 6.1% on a year-over-year basis. Analysts expect that Darden Restaurants will post $2.90 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Friday, November 1st. Shareholders of record on Thursday, October 10th will be paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a dividend yield of 4.71%. The ex-dividend date is Tuesday, October 8th.
DRI has been the subject of a number of other recent research reports. Analysts at BMO Capital Markets cut their price target on shares of Darden Restaurants from $55.00 to $50.00 in a research note to investors on Tuesday, September 24th. They now have a market perform rating on the stock. Separately, analysts at Buckingham Research upgraded shares of Darden Restaurants from an underperform rating to a neutral rating in a research note to investors on Monday, September 23rd. Finally, analysts at Telsey Advisory Group cut their price target on shares of Darden Restaurants from $54.00 to $49.00 in a research note to investors on Monday, September 23rd. They now have a not rated rating on the stock. Two investment analysts have rated the stock with a sell rating, eighteen have issued a hold rating and seven have issued a buy rating to the company. Darden Restaurants has a consensus rating of Hold and a consensus price target of $50.37.
Darden Restaurants, Inc (NYSE:DRI) is a company owned and full-service restaurant company.
To view Zacks’ full report, visit www.zacks.com
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