Darden Restaurants Reported Better Than Expected Earnings

Jun 23, 2022 By MarketDepth

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Darden Restaurants (NYSE: DRI) reported better-than-expected fourth-quarter earnings on Thursday as customers returned to Longhorn Steakhouse and The Capital Grille. However, amid continuous inflation and economic uncertainty, the company posted a mixed forecast for fiscal 2023. Shares rose 5% during premarket trading following the news.

Olive Garden Parent Beat Earnings

The multi-brand restaurant operator and parent company to Olive Garden, reported earnings of USD2.24 per share, compared to the expected USD2.21 a share. Revenue amounted to USD2.6 Billion, higher than analysts anticipated USD2.54 Billion.

“We had a strong quarter despite experiencing high inflation, and fiscal 2022 was a solid year. Darden’s competitive advantages enabled our brands to strengthen their business models while our restaurant teams continued to deliver exceptional guest experiences in a challenging operating environment. As we begin our new fiscal year, our focus remains on driving profitable sales, investing in the guest experience and simplifying operations. Darden’s strategy, and our strong balance sheet, positions us well regardless of the operating environment.”

Darden President & CEO Rick Cardenas

Darden predicts same-store sales growth to be between 4% to 6% and the opening of 50 to 60 new locations within fiscal 2023. Additionally, the company has approved a USD1 Billion share buyback program, that does not have an expiration date.