Categories Consumer, Earnings

Darden beats earnings expectations but sales miss estimates

Darden Restaurants Inc. (NYSE: DRI) reported better-than-expected earnings for the first quarter of 2020 but sales came in shy of forecasts. The stock was down 1.7% in premarket hours on Thursday.

Total sales rose 3.5% year-over-year to $2.13 billion but missed estimates of $2.14 billion. Blended same-restaurant sales rose 0.9%. The quarterly sales results were driven by the addition of 40 net new restaurants and growth in same-restaurant sales.

Darden beat earnings estimates but revenue missed expectations for Q1 2020

Net income was $170.6 million, or $1.37 per share, compared to $166.2 million, or $1.32 per share, last year. Analysts had forecast EPS of $1.36.

During the quarter, Darden reported sales increases across all its segments. Same-restaurant sales increased in the Olive Garden, LongHorn Steakhouse, The Capital Grille and Eddie V’s segments while Cheddar’s Scratch Kitchen, Yard House, Seasons 52 and the Bahama Breeze divisions reported decreases. Olive Garden saw a 0.8% drop in same-restaurant traffic while LongHorn Steakhouse posted a 0.3% increase.  

Also see: Darden Q1 2020 Earnings Preview

Darden declared a quarterly dividend of $0.88 per common share, payable on November 1, 2019 to shareholders of record on October 10, 2019. The Board also authorized a new share repurchase program allowing the company to buy back up to $500 million of its common stock.

For fiscal year 2020, Darden expects total sales growth of 5.3% to 6.3%, including approx. 2% growth related to the 53rd week. Same-restaurant sales growth is expected to be 1-2%. The company expects EPS from continuing operations to be $6.30-6.45. Darden expects approx. 50 gross and 44 net new restaurant openings in the year.

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

Most Popular

Key highlights from Halliburton (HAL) Q1 2021 earnings results

Halliburton Company (NYSE: HAL) reported first-quarter 2021 earnings results today. Total revenue decreased by 31% to $3.45 billion from $5.03 billion year on year. The company had a net income

Key highlights from Intuitive Surgical (ISRG) Q1 2021 earnings results

Intuitive Surgical, Inc. (NASDAQ: ISRG) reported first quarter 2021 earnings results today. Revenues increased 18% year-over-year to $1.29 billion, driven by growth in da Vinci procedures and system placements. GAAP net income

Earnings Infographic: Netflix (NFLX) subscriber growth slows; Q1 results beat

Netflix, Inc. (NASDAQ: NFLX) Tuesday said its first-quarter 2021 earnings more than doubled. Both revenues and profit topped the Street view, but the streaming giant's subscriber growth decelerated. At the

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top