|Bid||89.3500 x 300|
|Ask||89.3800 x 300|
|Day's range||89.0500 - 89.7800|
|52-week range||76.2700 - 100.1100|
|PE ratio (TTM)||20.64|
|Earnings date||25 Jun 2018 - 29 Jun 2018|
|Forward dividend & yield||2.52 (2.87%)|
|1y target est||100.41|
With first-quarter earnings season about to kick off for restaurant stocks, Maxim Group's Stephen Anderson takes a look at the sector, writing that Del Taco (TACO) is en fuego. Del Taco moves to his top pick, as he sees more than 70% upside to his $19 price target.
With March firmly in the rear-view mirror, Canaccord's Lynne Collier takes a look at how restaurants fared, writing that casual dining chains had a strong finish to the first quarter, despite headwinds from weather and the timing of the Easter holiday. Collier estimates that in the final week of March, casual dining restaurants saw comparable-store sales of 1.5% to 2.5%, which puts her estimate for the whole month's comps between 1% and 1.5%, at the higher end of her previous forecast. Collier writes that in her coverage, Sonic (SONC), Darden Restaurants (DRI), and Texas Roadhouse (TXRH) probably had the most weather exposure, although the former two have already reported.
There could be more target price revisions in the coming days. Currently, the analysts’ 12-month average target price for the company is $57.17, which reflects a 40.5% upside to the share price as of April 3, 2018. Currently, analysts’ target price for McDonald’s is $187.04, reflecting a 16.6% upside to the stock price as of April 3, 2018.
While sales-building efforts and synergies from Cheddar's acquisition put Darden (DRI) on growth trajectory, high costs and stiff competition remain potential concerns.
Zacks Industry Outlook Highlights: Darden Restaurants, Domino's Pizza, McDonald's, Yum! Brands and Restaurant Brands International
Ahead of the upcoming fiscal 4Q17 results, all ten analysts covering Dave & Buster’s Entertainment (PLAY) have maintained a “buy” rating. The stock doesn’t have any “hold” or “sell” ratings. The mean target for Darden’s is $100.59, which indicates a 19.2% upside to the stock price as of March 28, 2018.
Analysts expect the company to report 12.9% growth in revenue, but adjusted EPS (earnings per share) are projected to be down 4.8% to $0.60. The company is lowering its full-year comps expectations to -1.0% to -0.7% as against earlier growth expectations of flat to up 0.75%.
In fiscal 3Q!8, Darden Restaurants (DRI) posted adjusted EPS (earnings per share) of $1.71, which represents growth of 29.5% from $1.32 in fiscal 3Q17. Darden’s EPS growth was driven by revenue growth, a lower effective tax rate, and share repurchases. The application of the new tax rate for fiscal 1Q18 and fiscal 2Q18 lowered the tax rate by 7.0%, the resolution of other tax matters lowered the tax rate by 4.0%, and the hedging of deferred compensation also lowered the tax rate by approximately 4.0%.
Darden Restaurants beat Q3 earnings estimates but revenue and same-store sales came in light. The Olive Garden parent's full-year EPS target implied Q4 caution.