Markets & Finance

Harris Nesbitt Keeps Underperform on Darden Restaurants


Harris Nesbitt keeps its underperform rating on Darden Restaurants (DRI).

Analyst Matthew Difrisco says the 46 cents fourth-quarter operating EPS was a penny ahead of his estimate and two cents above consensus. He says EPS quality is soft, given aid from favorable cost of goods sold, and a greater share repurchase.

Difrisco remains concerned with traffic declines at Red Lobster. He says management's guidance represents a lackluster outlook given negative year-ago same-store sales, and a more profitable portfolio of restaurants post-closures. He keeps the $1.63 fiscal 2005 EPS estimate and the $19 target.

Difrisco says near-term investor concern will likely be focused on May's traffic decline at Olive Garden and uncertainty about Red Lobster's turnaround.


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus