The parent company of Olive Garden and Longhorn Steakhouse, Darden Restaurants (DRI), released its second quarter results after the closing bell on Tuesday. Although the company posted a net loss for the quarter, it exceeded analysts’ expectations.
Inside the Results
Earnings
Darden Restaurants reported a second quarter net loss of $32.8 million, or 24 cents per share, compared to earnings of $19.8 million, or 5 cents per share, a year ago. Excluding special items, earnings were 28 cents per share, above analysts’ view of 27 cents per share.
Revenue
DRI reported revenue of $1.56 billion, up from $1.49 billion last year. Analysts expected to see revenue of $1.55 billion.
Outlook
Looking forward, Darden expects to see FY2015 earnings between $2.25 and $2.30. This range is up from the company’s previous outlook of $2.22 to $2.30 per share. Analysts expect to see earnings of $2.26 per share.
More to Consider Than DRI’s Earnings Release
Darden has been in the financial news over the last couple of months. The company has been faced with pressures from activist investor Starboard Value regarding its operations. Although the stock is flat YTD, the share price has shot up in the last few months on news of a possible takeover.
Mutual Funds to Watch
The funds listed below may be a good option for investors seeking exposure to Darden. The three funds below currently hold the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| LCEAX | Invesco Diversified Dividend | 2.04% |
| VMCIX | Vanguard Mid Cap Index | 1.73% |
| VTSMX | Vanguard Total Stock Mkt Idx | 1.65% |
The Bottom Line
The funds above offer investors a stake in DRI, while remaining diversified. Investors interested in DRI may also be interested in Yum! Brands (YUM) and Brinker International (EAT).
Shares of DRI are up 5% YTD.