Darden Restaurants Stock Pops on Earnings Beat

Darden also lifted its full-year profit forecast

Digital Content Manager
Mar 21, 2019 at 9:40 AM
facebook twitter linkedin

The shares of Darden Restaurants Inc (NYSE:DRI) are up 4.1% at $113.05 in early trading after this morning's fiscal third-quarter earnings report exceeded analysts' expectations on the top and bottom line. The company also lifted its full-year profit guidance. CEO Gene Lee cited strong sales in its Olive Garden and Longhorn Steakhouse franchises.  

The 200-day moving average has acted as a floor for DRI of late, with the equity bouncing atop the trendline in an attempt to rebound off its late-December dip. The stock is up 21.2% year-over-year, and will now try to break above a recent ceiling near the $114 level. 

Analysts are already waxing bullish on the casual dining concern. Fourteen of the 23 analysts following the stock call it a "strong buy," while only one says "sell." Some price-target hikes could add tailwinds, however. Currently, the consensus 12-month target price of $121.23 is at a slim 7.2% premium to current levels. 

While short interest has begun to unravel, the 6.51 million shares sold short still represent 5.3% of the stocks available float. At the stock's average daily trading volume, it would take over seven days to buy back these bearish bets, leaving plenty of room for a short squeeze. 






These investors are using the market's volatility to their advantage and scoring triple-digit gains on many of their trades.

Even in today's sideways bear market, this trading strategy has continued to provide consistency and profitability to a small group of investors. By using this approach, these traders are removing directional risk and still hitting triple-digit returns. If you want access to this strategy, and lower risk with higher returns sounds good to you, then don't wait another minute.

Join us now to receive our next trades the moment they come out!


Common mistakes options traders make


Special Offers from Schaeffer's Trading Partners