Darden Restaurants (NYSE:DRI)‘s stock had its “neutral” rating reiterated by Zacks in a research note issued on Thursday, AR Network reports. They currently have a $49.00 price objective on the stock. Zacks‘ target price indicates a potential upside of 5.22% from the company’s current price.
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.”
Shares of Darden Restaurants (NYSE:DRI) traded down 1.72% on Thursday, hitting $45.77. The stock had a trading volume of 1,206,452 shares. Darden Restaurants has a one year low of $44.11 and a one year high of $56.14. The stock has a 50-day moving average of $47.37 and a 200-day moving average of $50.07. The company has a market cap of $5.959 billion and a P/E ratio of 16.54.
Darden Restaurants (NYSE:DRI) last posted its quarterly earnings results on Friday, September 20th. The company reported $0.53 earnings per share (EPS) for the quarter, missing the 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 previous year, the company posted $0.85 earnings per share. The company’s revenue for the quarter was up 6.1% on a year-over-year basis. On average, analysts predict that Darden Restaurants will post $2.90 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Friday, November 1st. Stockholders of record on Thursday, October 10th will be given a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a yield of 4.72%. The ex-dividend date of this dividend is Tuesday, October 8th.
Other equities research analysts have also recently issued reports about the stock. Analysts at BMO Capital Markets cut their price target on shares of Darden Restaurants (NYSE:DRI) 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 (NYSE:DRI) 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 (NYSE:DRI) 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 given a hold rating and eight have issued a buy rating to the stock. The company currently 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.
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