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Nov 27, 2022

Darden Q2 2023 Earnings Report

Darden's Q2 2023 financial performance showcased strong total sales growth and same-restaurant sales increases across all brands.

Key Takeaways

Darden Restaurants reported a 9.4% increase in total sales, reaching $2.49 billion, driven by a 7.3% blended same-restaurant sales increase and contributions from 35 net new restaurants. The company's diluted net earnings per share increased by 2.7% to $1.52. Darden surpassed $10 billion in sales on a trailing 52-week basis for the first time.

Total sales increased 9.4% to $2.49 billion.

Blended same-restaurant sales increased 7.3%.

Diluted net earnings per share increased 2.7% to $1.52.

The Company repurchased $100 million of its outstanding common stock.

Total Revenue
$2.49B
Previous year: $2.27B
+9.4%
EPS
$1.52
Previous year: $1.48
+2.7%
Olive Garden same-store sales
7.6%
Previous year: 29.3%
-74.1%
LongHorn same-store sales
7.3%
Previous year: 31.2%
-76.6%
Fine Dining same-store sales
5.9%
Previous year: 61.6%
-90.4%
Gross Profit
$443M
Previous year: $448M
-1.2%
Cash and Equivalents
$241M
Previous year: $746M
-67.7%
Total Assets
$10B
Previous year: $10.4B
-3.6%

Darden

Darden

Darden Revenue by Segment

Forward Guidance

Darden updated its financial outlook for fiscal year 2023, including total sales of $10.3 to $10.45 billion and same-restaurant sales growth of 5% to 6.5%.

Positive Outlook

  • Total sales of $10.3 to $10.45 billion.
  • Same-restaurant sales growth of 5% to 6.5%.
  • New restaurant openings of 55 to 60.
  • An effective tax rate of approximately 13%.
  • Diluted net earnings per share from continuing operations of $7.60 to $8.00.

Challenges Ahead

  • Total capital spending of $525 to $575 million.
  • Total inflation of approximately 7%.
  • Approximately 123 million weighted average diluted shares outstanding.

Revenue & Expenses

Visualization of income flow from segment revenue to net income