Darden Exceeds Earnings Expectations despite Slow Sales at Olive Garden and Fine-Dining Restaurants

Money | June 20, 2024, 7:24 a.m.

Darden Restaurants reported a mixed quarterly performance, with Olive Garden experiencing a decline in same-store sales for the second consecutive quarter. Despite this, the company's overall same-store sales remained flat, with LongHorn Steakhouse showing growth. Darden's net income for the fiscal fourth quarter decreased, but revenue increased due to acquisitions. Earnings per share exceeded Wall Street expectations, and the company's forecast for fiscal 2025 remains positive, with a projected growth of 1% to 2% in same-store sales. Darden plans to invest in capital expenditures to further drive growth. Overall, while facing challenges in certain segments, Darden is optimistic about its future performance and is in line with analyst expectations for the upcoming fiscal year.