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What Drove Darden’s Earnings per Share in Fiscal 3Q18

Ralph Nathan
What Drove Darden’s Earnings per Share in Fiscal 3Q18

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%.