Categories AlphaGraphs, Consumer, Earnings

Darden tops Q4 earnings estimates but misses on sales

Darden Restaurants Inc. (NYSE: DRI) beat earnings estimates for the fourth quarter of 2019 but sales fell short of forecasts, causing the stock to slide 4.6% during premarket hours on Thursday.    

Total sales grew 4.5% year-over-year to $2.23 billion, helped by the addition of 39 new restaurants and a blended same-restaurant sales increase of 1.6%, but came in shy of estimates of $2.24 billion.   

Darden reports fourth quarter 2019 earnings results

Reported net income was $208 million, or $1.67 per share, compared to $174 million, or $1.39 per share, in the year-ago period. Adjusted EPS from continuing operations increased 26.6% to $1.76, beating forecasts of $1.72.  

During the quarter, Darden reported sales and profit increases across all its business segments. The company also recorded same-restaurant sales growth across its Olive Garden, LongHorn Steakhouse, The Capital Grille and Eddie V’s brands. However, same-restaurant sales declined in the Cheddar’s Scratch Kitchen, Yard House, Seasons 52 and Bahama Breeze brands.   

Fiscal 2020 is a 53-week fiscal year and Darden’s outlook includes the impact of the additional week. For fiscal 2020, the company expects total sales growth of 5.3-6.3%, including approx. 2% growth related to the 53rd week.  

Same-restaurant sales is expected to grow 1-2%. Diluted EPS from continuing operations is expected to be $6.30-6.45. Darden anticipates approx. 50 gross and 44 net new restaurant openings during the year.

Darden increased its quarterly dividend by 17% to $0.88 per common share. The dividend is payable on August 1, 2019 to shareholders of record on July 10, 2019.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

CL Earnings: Key quarterly highlights from Colgate-Palmolive Company’s Q4 2022 financial results

Colgate-Palmolive Company (NYSE: CL) reported fourth quarter 2022 earnings results today. Net sales increased 5% year-over-year to $4.62 billion. Organic sales growth was 8.5%. Net income attributable to Colgate-Palmolive Company was

Key highlights from Chevron Corporation’s (CVX) Q4 2022 earnings results

Chevron Corporation (NYSE: CVX) reported fourth quarter 2022 earnings results today. Total revenues and other income were $56.4 billion compared to $48.1 billion in the year-ago period. Net income attributable

AXP Earnings: All you need to know about American Express’ Q4 2022 earnings results

American Express Company (NYSE: AXP) reported fourth quarter 2022 earnings results. Consolidated total revenues net of interest expense were $14.2 billion, up 17% from a year ago. Net income was

Add Comment
Viewing Highlight