Darden exceeds earnings expectations despite weak sales at Olive Garden and fine-dining locations

Money | June 20, 2024, 6:14 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 positive growth. Darden's net income for the fiscal fourth quarter was slightly lower than the previous year, but earnings per share beat Wall Street expectations. The acquisition of Ruth's Chris Steak House and other locations contributed to a 6.8% increase in net sales. Looking ahead to fiscal 2025, Darden is forecasting modest same-store sales growth of 1% to 2% and earnings per share in line with analysts' estimates. The company plans to invest in capital expenditures and navigate through challenges such as inflation, while continuing to focus on its diverse portfolio of restaurant brands.