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Darden Restaurants on Thursday raised its revenue outlook for fiscal 2023 for the second consecutive quarter after reporting quarterly results that showed growth across the board.
For fiscal 2023, Darden now expects sales of $10.45 billion to $10.5 billion, up from its prior range of $10.3 billion to $10.45 billion.
Darden CEO Rick Cardenas credited the quarter’s strong sales growth to its strategy of pricing below inflation. He said in a statement that the company’s sales and traffic outperformed the broader restaurant industry.
Here’s what the company reported for its most recent quarter:
- Earnings per share: $2.34
- Revenue: $2.79 billion
Analysts surveyed by Refinitiv had expected EPS of $2.25 and revenue of $2.73 billion. It was not immediately clear whether Darden’s reported results were comparable to consensus estimates.
The restaurant company reported fiscal third-quarter net income of $286.6 million, or $2.34 per share, up from $247 million, or $1.93 cents per share, a year earlier.
Net sales rose 13.8% to $2.79 billion, fueled by same-store sales growth of 11.7% across all of its brands, which include chains like Olive Garden, LongHorn Steakhouse and The Capital Grille. Wall Street was expecting same-store sales to increase just 9.1%, according to StreetAccount estimates.
Olive Garden, which accounted for nearly half of Darden’s quarterly revenue, reported same-store sales growth of 12.3%. LongHorn Steakhouse saw its same-store sales climb 10.8%. And its fine-dining business, which includes The Capital Grille, reported same-store sales growth of 11.7%.
Darden said it added 35 net new restaurants during the quarter.
In addition to hiking its revenue forecast, Darden narrowed its expected range for fiscal 2023 earnings to between $7.85 and $8 per share. The company also raised its inflation outlook to a range of 7% to 7.5%, up from its prior range of 7%.
Read the full Darden Restaurants earnings report.
This story is developing. Please check back for updates.