ORLANDO - Darden Restaurants, Inc. (NYSE:DRI) has reported a positive finish to its fiscal year, with both earnings and revenue for the fourth quarter surpassing analyst estimates. The company's stock rose 2.5% following the announcement.
For the fourth quarter ended May 26, 2024, Darden posted adjusted earnings per share (EPS) of $2.65, marginally beating the analyst consensus of $2.61. Total sales saw a 6.8% increase to $3 billion, topping the $2.98 billion estimate and marking a notable rise from the $2.77 billion reported in the same quarter last year. The growth was attributed to the addition of 80 company-owned Ruth's Chris Steak House restaurants and 37 other net new restaurants.
President & CEO Rick Cardenas credited the company's disciplined approach and focus on fundamentals for the strong performance, stating, "This enabled us to exceed the high end of the EPS range we provided at the beginning of the fiscal year despite weakening conditions that emerged in the back half of the year."
Looking ahead, Darden anticipates FY2025 revenue to be between $11.8 billion and $11.9 billion, significantly higher than the analyst consensus of $11.4 billion. This forecast reflects the company's confidence in its growth trajectory, including a projected 1.0% to 2.0% increase in same-restaurant sales and the opening of 45 to 50 new restaurants.
Despite mixed same-restaurant sales with Olive Garden and Fine Dining segments showing declines of 1.5% and 2.6% respectively, the overall increase in total sales indicates a strong expansion strategy. LongHorn Steakhouse, in particular, demonstrated a robust performance with a 4.0% increase in same-restaurant sales.
The company also declared a quarterly cash dividend of $1.40 per share, a 6.9% increase from the third quarter of fiscal 2024, and continued its share repurchase program, buying back approximately $97.3 million of its common stock during the quarter.
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