Darden Increases FY16 Outlook; Q3 Profit Tops Estimates - Quick Facts

(RTTNews) - Darden Restaurants, Inc., (DRI) announced the company now projects fiscal 2016 adjusted net earnings per share to be in the range of $3.48 to $3.52, an increase of between 36% and 38% from fiscal 2015, on a 52-week basis. The company said this reflects the expectation that its combined U.S. same-restaurant sales growth in the fiscal year will be 3.0% to 3.5%. Analysts polled by Thomson Reuters expect the company to report profit per share of $3.49. Analysts' estimates typically exclude special items.

In December 2015, Darden projected its fiscal 2016 same-restaurant sales to grow in the range of 2.5% to 3.0% and adjusted net earnings per share to be in the range of $3.25 to $3.35.

For the third-quarter of fiscal 2016, Darden reported that its adjusted net earnings per share from continuing operations increased 22.2% to $1.21. On average, 24 analysts polled by Thomson Reuters expected the company to report profit per share of $1.19 for the quarter.

On a reported basis, net earnings per share from continuing operations were $0.84 and were negatively impacted by approximately $0.37, primarily related to the early retirement of debt. For the third-quarter of prior year, earnings per share from continuing operations was $1.01. Earnings from continuing operations decreased year-over-year to $108.2 million from $128.4 million.

Total sales from continuing operations increased 6.7% to $1.85 billion. Same-restaurant sales increased 6.2% for the fiscal quarter. Analysts expected revenue of $1.84 billion for the quarter.