Mind-blowing Stock: Darden Restaurants, Inc.’s (NYSE:DRI)

Darden Restaurants, Inc.’s (NYSE:DRI) stock identified change of 26.83% away from 52-week low price and recently located move of -3.02% off 52-week high price. The company has 123.30 million of outstanding shares and 122.75 million shares were floated in the market.  

Darden Restaurants, Inc., (DRI) recently stated its financial results for the fourth quarter and fiscal year ended May 26, 2019.

“I’m happy with the results we achieved during the fourth quarter, which wrapped up another strong year of sales and profit growth for Darden,” stated CEO Gene Lee.  “Our results for the full year further strengthened our competitive position as we continued to grow market share and delivered competitively superior returns.”

Quarterly Dividend Raise 
On June 19, 2019, the Board of Directors raised the quarterly dividend 17% to $0.88 per ordinary share.  The quarterly dividend is payable on August 1, 2019 to shareholders of record on July 10, 2019.

Share Repurchase Program
During the quarter, the Company repurchased about 0.4M shares of its ordinary stock for a total cost of about $42M.  For fiscal 2019, the Company repurchased about 1.9M shares of its ordinary stock for a total cost of about $208M.  As of the end of fiscal 2019, the Company had about $304M remaining under the current $500Mrepurchase authorization.

“We generated $1.3B in operating cash flow in fiscal 2019, which was sufficient to invest in growth, return capital to our shareholders, and strengthen our balance sheet,” stated CFO Rick Cardenas.  “We returned $578M to shareholders in the form of dividends and share repurchases this year.  The strength and durability of our cash flows is evident in the fact that, over the past four years, we’ve generated $4B in operating cash flow and returned over $2B to investors.”

Fiscal 2020 Financial Outlook
Fiscal 2020 is a 53-week fiscal year.  This outlook includes the impact of the additional week.

  • Total sales growth of 5.3% to 6.3%, including about 2% growth related to the 53rd week
  • Same-restaurant sales growth of 1% to 2%
  • About 50 gross and 44 net new restaurant openings
  • Total capital spending of $450 to $500M
  • Total inflation of about 2.5%
  • Effective tax rate of 10% to 11%
  • Diluted net earnings per share from continuing operations of $6.30 to $6.45 including:
  • About 124M weighted average diluted shares outstanding

Darden Restaurants, Inc.’s (NYSE:DRI) moved with change of 1.27% to $121.54 with the total traded volume of 1.05 million shares in recent session versus to an average volume of 1.41 million.  Analyst recommendation for this stock stands at 2.00. The P/E ratio was recorded at 22.32.The volatility in the previous week has experienced by 2.21% and observed of 2.28% in the previous month.92.10% ownership is held by institutional investors while insiders hold ownership of 0.10%.

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