Jefferies Remains Sidelined on Darden Restaurants (DRI) Following 3Q Report
Jefferies reiterated a Hold rating and $66.00 price target on Darden Restaurants (NYSE: DRI) as strong results continue through the company's 3Q. DRI reported adjusted EPS of $1.21, at the high end of DRI's pre-announced range. EPS was driven by +4% combined SSS, sales leverage across all segments and continued cost discipline. Management raised F16 guidance for adjusted EPS by 6% to $3.50, at the midpoint and Jefferies estimates results at the higher end of the range at $3.51.
Analyst Andy Barish commented, "3Q adj. EPS of $1.21 was at the high end of DRI's pre-announced range, driven by +4% combined SSS, sales leverage across all segments and continued cost discipline. Despite ongoing challenges within Casual Dining, DRI continues to post strong results and market share gains, but sustainability is tough to predict. Our F16 est. is unchanged at $3.51, but our F17 est. goes to $3.95 (from $3.84) and we introduce our F18 est. of $4.35. Maintain Hold and $66 PT."
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Shares of Darden Restaurants closed at $64.80 yesterday.