An Olive Garden restaurant in Silverdale. Darden Restaurants, Inc. The company, which owns Olive Garden and other restaurant chains, is due to report its fourth-quarter 2022 earnings on June 23.
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Darden Restaurant It reported quarterly earnings and revenue on Thursday that beat analysts’ expectations, despite high inflation that weighed on its profits.
Faced with high costs and other economic uncertainty, Olive Garden’s parent company issued a mixed forecast for fiscal year 2023.
The company’s shares rose 1.6% in premarket trading.
Here’s what the company reported compared to Wall Street’s expectation, based on a survey of analysts by Refinitiv:
- Earnings Per Share: $2.24 vs. $2.21 Expected
- Revenue: $2.6 billion versus $2.54 billion expected
Darden reported net income of $281.7 million, or $2.24 per share, down from $368.5 million, or $2.78 per share, in the fiscal fourth quarter a year ago. Analysts polled by Refinitiv were expecting earnings of $2.21 per share.
gross sales It rose 14.2% to $2.6 billion, topping expectations of $2.54 billion. Across the company, same-store sales climbed 11.7%, driven by the rebound of its fine dining business.
For fiscal year 2023, Darden is expecting earnings per share from continuing operations of $7.40 to $8, which is below analysts’ expectations of $8.11. The company is assuming that inflation will increase by 6% in the new financial year. Its revenue outlook of $10.2 billion to $10.4 billion is in line with Wall Street’s estimate of $10.22 billion.
Darden also expects same-store sales growth of 4% to 6% in fiscal 2023 and 50 to 60 new restaurant openings.