Sales benefited from better pricing and different menu-mix. The increase was offset by a decline in same-restaurant traffic due to severe winter weather that negatively impacted same-restaurant sales by 30 basis points.
Looking ahead into fiscal 2019, the company expects sales growth of 4-5% and EPS from continuing operations of $5.40-$5.56. Same-restaurant sales are expected to rise by 1-2% and the company predicts to open 45 to 50 restaurants during the full year. Total capital spending is anticipated to be $425-475 million for the year.
During the fourth quarter, the company witnessed a rise in food and beverage expenses, restaurant labor costs, restaurant expenses, marketing expenses and depreciation and amortization. But it curbed general and administrative expenses that fell by 22.9%. Helped by an increase in sales, Darden was able to manage the 8% increase in operating costs and expenses to a large extent.
For over the past three years, the restaurant operator has returned more than $1.5 billion to its shareholders and during fiscal 2018 it repaid $550 million in the form of dividends and share buybacks. In addition, the board authorized a new share repurchase program of up to $500 million. Darden bought back about 0.3 million shares for about $27 million in the final quarter of 2018.
On June 20, the board lifted quarterly dividend by 19% to $0.75 per common share, payable on August 1, 2018, to shareholders of record on July 10, 2018.
Darden’s shares ended Wednesday’s regular trading session down 1.42% at $93.27 on the NYSE. The stock had been trading between $76.27 and $100.11 for the past 52 weeks.