StockCall Insight into Darden and Brinker: Increased Consumer Spending To Benefit Restaurants
27 Feb, 2013, 13:00 GMT
LONDON, February 27, 2013 /PRNewswire/ --
As the U.S. economy continues to improve, there has been an increase in private sector hiring, resulting in growing real personal disposable income. Due to the increase in disposable income the restaurant industry stands to benefit. The National Restaurant Association (NRA) has forecasted the total industry sales to top $660 billion in 2013, growing by 3.8 percent over 2012. Darden Restaurants Inc. (NYSE: DRI) and Brinker International Inc. (NYSE: EAT) would be major beneficiaries. StockCall has issued technical analysis and charting reports on Darden Restaurants and Brinker International. Download these free reports now at
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Darden Restaurants Inc. announces projected third quarter earnings
Darden Restaurants Inc. is the world's largest full-service restaurant company which owns and operates more than 2,000 restaurants under several iconic brands like Red Lobster, Olive Garden, Longhorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille and few others. For the third quarter, the restaurant chain expects its diluted earnings per share to be in the range of $1.00 to $1.02. The company expects, compared to prior year, its blended U.S. same-restaurant sales growth for its Specialty Restaurant Group to be 2%. The company also expects diluted net earnings per share from continuing operations for fiscal 2013 to be between $3.06 and $3.22, which includes approximately 9 cents of transaction and closing costs associated with the purchase of Yard House. Download the free research on Darden Restaurants Inc. today by registering at
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Clarence Otis, Chairman and Chief Executive Officer of Darden, said: "Our priority is reestablishing same-restaurant traffic momentum at our three largest brands. We are pleased with many of the changes we've made to be more responsive to the financial realities of our guests by enhancing affordability on our everyday menus and our promotional offerings. Yet, we recognize there is still more to do to further address affordability and to improve other important aspects of the guest experiences we provide. We are confident, however, that we are taking the right steps for our guests and that these will result in same-restaurant traffic improvement as we move forward."
Brinker International Inc. reports second quarter results
Brinker International Inc. is one of the world's leading casual dining restaurant companies with more than 1,500 restaurants. For second quarter of fiscal 2013, the company reported Net Income of $37.1 million, or $0.50 per diluted share, on Revenues of $689.7 million, thereby representing 4% earnings growth and 1.2% sales growth over second quarter of fiscal 2012. For twenty-six weeks period, Revenues were $1.37 billion, growing by 1.7% over same period of fiscal 2012. The company has declared a quarterly dividend of $14.4 million, $0.20 per common share. Sign up and have access to our free report on Brinker International Inc. at
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The company repurchased approximately 1.5 million shares of its common stock for $45.1 million during the second quarter of fiscal 2013 and a total of 4 million shares for approximately $131.4 million year-to-date.
Brinker also announced the election of Gerardo (Gerry) Lopez to its Board of Directors. "Gerry will be an outstanding addition to our Board of Directors," said Doug Brooks, Chairman of the Board of Brinker International. "His nearly three decades of experience in the entertainment, beverage and consumer packaged goods industries, in both the U.S. and abroad, provides him with unique insight which will be beneficial to Brinker."
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