Jefferies Maintains Buy on Darden Restaurants

Jefferies is out with its report today on Darden Restaurants DRI, maintaining Buy. In a note to clients, Jefferies writes, "$1.00 EPS vs. our $0.99, guide $0.98, cons $1.00 as 2.2% blended SSS drove leverage on labor & other rest exp offsetting higher COGS. SSS beat at all brands except OG (flat again). F12 EPS guide +12-15% ($3.88 mid-pt) vs our $3.87 & cons $3.81. Stock weak on OG, but recall volumes did not drop in recession, hence the relative underperformance. We think OG is fine & see upside for EPS & multiple if blended SSS remain 2%." Shares of DRI closed Thursday at $49.76.