New York, NY – A leading restaurant chain, Darden, reported a positive quarter performance, with shares rising over 2% in premarket trading. The company’s fiscal fourth-quarter results exceeded Wall Street’s expectations, showcasing adjusted earnings per share of $2.65 compared to the $2.61 anticipated. However, revenue slightly missed projections at $2.96 billion versus the expected $2.97 billion.
Despite a dip in net income from the previous year, Darden saw a significant increase in net sales, driven by the acquisition of Ruth’s Chris Steak House and other new locations. The company’s same-store sales remained flat overall but faced challenges from Olive Garden and its fine-dining establishments.
Olive Garden experienced a decline in same-store sales by 1.5%, contrary to analysts’ expectations of maintaining flat growth. The fine-dining segment, including The Capital Grille and Eddie V’s, also saw a decrease in same-store sales, with Ruth’s Chris set to impact future results.
In contrast, LongHorn Steakhouse emerged as a standout performer within Darden’s portfolio, reporting a 4% increase in same-store sales. Looking ahead to fiscal 2025, Darden is forecasting earnings per share and net sales within range of Wall Street estimates, while projecting moderate inflation and same-store sales growth.
With plans to integrate Ruth’s Chris into its same-store sales calculation in the following quarters, Darden aims to invest significantly in capital expenditures. The company’s strategic outlook underscores its commitment to sustained growth and operational efficiency in the competitive restaurant industry.