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2mo ago

Darden Restaurants Tops Q4 Earnings, Raises Sales Outlook on Casual Dining Strength

Darden’s casual dining momentum spurred a new $1 billion share repurchase program to reward investors following a 4.6% rise in same-store sales.

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The sign outside the Olive Garden restaurant is seen in Westminster, Colorado March 19, 2015. Darden Restaurants Inc, the parent of Olive Garden will report earnings on March 20. REUTERS/Rick Wilking/File Photo
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Overview

  • Darden delivered adjusted earnings per share of $2.98 and revenue of $3.27 billion in the quarter, surpassing analysts’ forecasts of $2.97 and $3.26 billion.
  • Consolidated same-store sales increased 4.6% year-over-year, led by Olive Garden’s 6.9% gain and LongHorn Steakhouse’s 6.7% rise that outpaced expectations.
  • The company raised its annual same-store sales forecast to 2%–3.5% and projected fiscal 2026 revenue growth of 7%–8%, including the impact of an extra week.
  • Darden’s fine-dining operations, which include Ruth’s Chris Steak House and The Capital Grille, saw same-store sales decline by 3.3%.
  • The restaurant group expanded delivery partnerships with Uber Direct and rolled out promotions such as Olive Garden’s “buy one, take one” to sustain traffic.