Darden Restaurants, Inc. (DRI) Earnings Beat Reported

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Darden Restaurants, Inc. (NYSE:DRI) reported their fiscal 2016 second quarter earnings this morning, and the market seems to be reacting in a positive way. Shares of the restaurant operator are up $1.60 or 2.74% in pre-market trading thus far.

The company reported an EPS of 54 cents, beating Zacks consensus estimates of 42 cents per share by a mile. While earnings came in much better than expected, Darden Restaurants, Inc. (NYSE:DRI) did miss consensus estimates on the top line, with just $1.61 billion in revenue. Analysts were expecting $1.63 billion. On another positive note, the company said that all their brands have seen positive comps when compared to last year’s second quarter. The stock decreased 1.50% or $0.89 during the last trading session, hitting $58.4. Approximately 8,727 shares traded hands. DRI shares have declined 8.67% since May 15, 2015 and are currently downtrending. It has underperformed the S&P500 by 6.40%.

From a total of 9 analysts covering Darden Restaurants (NYSE:DRI) stock, 6 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $80 while the lowest target price is $64. The mean of all analyst targets is $70.43 which is 20.60% above today’s ($58.4) stock price. Darden Restaurants was the topic of 12 analyst reports since August 25, 2015 according to the firm StockzIntelligence Inc. Credit Suisse maintained shares on November 13 with a “Outperform” rating. Suntrust Robinson initiated shares with a”Neutral” rating and a $71 target share price in their report from an October 8. Maxim Group maintained DRI stock in a recent report from November 11 with a “Buy” rating. Finally, SunTrust initiated the stock with a “Neutral” rating in a report they issued on an October 8.

The institutional sentiment decreased to 0.87 in Q2 2015. It’s down 0.33, from 1.2 in 2015Q2. The ratio dropped, as 60 funds sold all their Darden Restaurants, Inc. shares they owned while 208 reduced their positions. 63 funds bought stakes while 169 increased their total positions. Institutions now own 121.18 million shares which is 17.50% more than the previous share count of 103.13 million in 2015Q2.

Starboard Value Lp holds 17.81% of its total portfolio in Darden Restaurants, Inc., equating to 11.64 million shares. 13D Management Llc owns 409,373 shares representing 7.47% of their total US portfolio. Moreover, Starwood Real Estate Securities Llc has 3.92% of their total portfolio invested in the company, equating to 105,552 shares. The Missouri-based Argent Capital Management Llc has a total of 2.83% of their portfolio invested in the stock. Roosevelt Investment Group Inc, a New York-based fund reported 558,669 shares owned.

Since March 26, 2015, the stock had 3 buys, and 4 sales for a total of $3.10 million in net activity. Sonsteby Charles M bought 500 shares worth $33,205. Fogarty James P bought 2,900 shares worth $204,450. Insignares Valerie L. sold 5,090 shares worth $377,280. Richmond C Bradford sold 15,620 shares worth $1.17M. The insider George David C sold 11,768 shares worth $840,918.

Darden Restaurants, Inc. is a full service restaurant company. The company has a market cap of $7.60 billion. The Firm owns and operates more than 1,500 restaurants. It has 25.21 P/E ratio. The Company’s restaurant brands include Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V’s Prime Seafood, Wildfish Seafood Grill and Yard House.

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