An Olive Garden restaurant in Silverdale. Darden Restaurants, Inc., which owns Olive Garden and other restaurant chains, is scheduled to report its fourth-quarter 2022 earnings on June 23.
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Darden Restaurants reported quarterly earnings and revenue on Thursday that beat analysts’ expectations, despite experiencing high inflation that hurt profits.
Faced with higher costs and other economic uncertainty, Olive Garden’s parent company issued a mixed forecast for fiscal 2023.
Shares of the company rose 1.6% in premarket trading.
Here’s what the company reported compared to what Wall Street expected, according to a Refinitiv survey of analysts:
- Earnings per share: $2.24 vs. $2.21 expected
- Revenue: $2.6 billion vs. $2.54 billion expected
Darden reported fiscal fourth-quarter net income of $281.7 million, or $2.24 per share, down from $368.5 million, or $2.78 per share, a year earlier. Analysts surveyed by Refinitiv had expected earnings per share of $2.21.
net sales it rose 14.2% to $2.6 billion, beating expectations of $2.54 billion. Companywide, same-store sales increased 11.7%, driven by a rebound in its fine dining business.
For fiscal 2023, Darden expects earnings per share from continuing operations of $7.40 to $8, below analyst expectations of $8.11. The company assumes that inflation will rise 6% in the new fiscal year. Its revenue outlook of $10.2 billion to $10.4 billion is in line with Wall Street estimates of $10.22 billion.
Darden also expects same-store sales growth of 4% to 6% and 50 to 60 new restaurant openings in fiscal 2023.