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Aug 28, 2022

Darden Q1 2023 Earnings Report

Darden's financial performance was solid, marked by a 6.1% increase in total sales and the return of normal seasonality to the business.

Key Takeaways

Darden Restaurants reported a 6.1% increase in total sales to $2.4 billion, driven by a 4.2% blended same-restaurant sales increase and sales from 34 net new restaurants. Diluted net earnings per share were $1.56. The company repurchased $199 million of its outstanding common stock.

Total sales increased by 6.1% to $2.4 billion.

Blended same-restaurant sales increased by 4.2%.

Reported diluted net earnings per share was $1.56.

The Company repurchased $199 million of its outstanding common stock.

Total Revenue
$2.45B
Previous year: $2.31B
+6.1%
EPS
$1.56
Previous year: $1.76
-11.4%
Olive Garden same-store sales
2.3%
Previous year: 37.1%
-93.8%
LongHorn same-store sales
4.2%
Previous year: 47%
-91.1%
Fine Dining same-store sales
7.6%
Previous year: 84.6%
-91.0%
Gross Profit
$358M
Previous year: $507M
-29.4%
Cash and Equivalents
$378M
Previous year: $948M
-60.2%
Total Assets
$10B
Previous year: $10.5B
-5.0%

Darden

Darden

Darden Revenue by Segment

Forward Guidance

The company reaffirmed all aspects of its financial outlook:

Positive Outlook

  • Total sales of $10.2 to $10.4 billion
  • Same-restaurant sales growth of 4% to 6%
  • 55 to 60 new restaurant openings
  • Total capital spending of $500 to $550 million
  • An effective tax rate of approximately 13.5%

Challenges Ahead

  • Total inflation of approximately 6%
  • Diluted net earnings per share from continuing operations of $7.40 to $8.00
  • Approximately 124 million weighted average diluted shares outstanding

Revenue & Expenses

Visualization of income flow from segment revenue to net income