Darden Restaurants (DRI) Tops Q3 EPS by 4c, Agrees To Acquire Cheddar's For $780M, All Cash

Darden Restaurants (NYSE: DRI) reported Q3 EPS of $1.32, $0.04 better than the analyst estimate of $1.28. Revenue for the quarter came in at $1.88 billion versus the consensus estimate of $1.87 billion.

Regarding Cheddar's acquisition the company comments "Ian Baines, CEO of Cheddar\'s, will remain President of Cheddar\'s and report to Gene Lee, Darden President and CEO." The company also comments on the costs: "Total acquisition and integration-related expenses are expected to be approximately $25 to $35 million." The deal should complete in Q4 2017.

"We continued to gain market share as we outperformed industry same-restaurant sales by a considerable margin again this quarter," said CEO Gene Lee. "Our teams remain incredibly focused on driving strong operating fundamentals, and I'm very proud of the work they are doing to create memorable experiences for our guests."

GUIDANCE:

Darden Restaurants sees FY2017 EPS of $3.95-$4.00, versus the consensus of $3.94. SSS expected to be +1.5%

For earnings history and earnings-related data on Darden Restaurants (DRI) click here.

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