Parent Company of Olive Garden and Red Lobster, Darden Restaurants Inc. (NYSE: DRI) said on Friday that fiscal first quarter earnings fell sharply as rising labor and food costs dented margin even as the restaurant operator’s biggest chain did not fare well. For the period which ended Aug. 25, same-store-sales at Olive Garden fell 4% while it dipped 5.2% at Red Lobster. Same-store-sales at LongHorn rose 3.2%. Overall, same-store-sales fell 3.3%. Both earnings and revenue missed analysts’ forecast. Total costs and expenses increased 9.6% to $2.07 billion. However, Darden backed its full-year guidance.
Tag: DRI
Major Movers on June 21; ZNGA, ORCL, KMX, DRI, THRX
Shares of Zynga Inc. (NASDAQ: ZNGA) plunged about 4.65% by afternoon trade. Morgan Stanley’s analyst Scott Devitt downgraded the social game maker’s stock to “underweight” from “overweight”. The research reports said that the popularity of its titles such as “FarmVille” “Poker” was fading fast as the competition was rising, adding that Zynga still relies far too heavily on Facebook Inc (NASDAQ: FB) to attract gamers. The research report said that company’s transition towards mobile gaming business will take some more time. Devitt thinks that Zynga might also slash more jobs in the futures, citing that it still employs more than required staff, which is weighing on EBITDA margin, the report added.
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Major Movers on December 4; GALE, PBY, MTN, GERN, DRI
Galena Biopharma Inc (NASDAQ: GALE) shares rallied on Tuesday after the company announced that it has signed an agreement with a subsidiary of Teva Pharmaceutical Industries Limited for the commercialization of NeuVax nelipepimut- in Israel.
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Darden Restaurants Shares Gain on Strong Q1 Results (DRI)
Shares of Darden Restaurants Inc. (NYSE: DRI), owner and operator of restaurants, are gaining in trading today after the company reported strong first-quarter results. DRI also declared a quarterly cash dividend of $0.50 per share.
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