Darden Restaurants Reports Strong Quarterly Earnings, Raises Annual Guidance
Darden Restaurants, the parent company of popular chains like Olive Garden and LongHorn Steakhouse, announced its quarterly earnings that surpassed expectations and increased its annual guidance. The company experienced sales growth across its brands, contributing to its strong performance.
Quarterly Results Beat Expectations
For the fiscal second quarter ending November 26, Darden Restaurants reported adjusted earnings per share of $1.84, surpassing the expected $1.74. However, revenue slightly missed expectations, coming in at $2.73 billion compared to the projected $2.74 billion.
Sales Growth and Performance
Darden Restaurants witnessed a 9.7% increase in sales compared to the same period last year. This growth was primarily driven by the inclusion of Ruth’s Chris Steak House locations and a 2.8% increase in same-restaurant sales. Olive Garden experienced a 4.1% rise in same-restaurant sales, while LongHorn Steakhouse saw a 4.9% jump. Fine dining, on the other hand, faced a decline of 1.7% in sales for the quarter.
Acquisition of Ruth’s Hospitality Group
In June, Darden Restaurants completed its acquisition of Ruth’s Hospitality Group, the owner of Ruth’s Chris Steak House. However, same-store sales from Ruth’s Chris Steak House will not be included until Darden has owned and operated the restaurant for a 16-month period.
Positive Outlook for Fiscal Year 2024
Darden Restaurants updated its fiscal year 2024 outlook, projecting adjusted earnings per share of $8.75 to $8.90, up from the previous estimate of $8.55 to $8.85. The company also expects sales of $11.5 billion for the fiscal year.
“We continued to profitably grow market share again this quarter as we outperformed industry same-restaurant sales and traffic,” said Darden President & CEO Rick Cardenas in a statement.
Despite the positive earnings report, Darden Restaurants‘ shares were down more than 1% in premarket trading on Friday.
With its strong performance and optimistic outlook, Darden Restaurants demonstrates its ability to adapt and thrive in the competitive restaurant industry.
