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Nov 26, 2023
Darden Q2 2024 Earnings Report
Darden's financial performance grew, driven by same-restaurant sales increase and the addition of Ruth's Chris Steak House restaurants.
Key Takeaways
Darden Restaurants reported a 9.7% increase in total sales, reaching $2.7 billion. This growth was fueled by a 2.8% increase in blended same-restaurant sales and the addition of 78 company-owned Ruth's Chris Steak House restaurants and 45 other net new restaurants. The adjusted diluted net earnings per share from continuing operations were $1.84, a 21.1% increase.
Total sales increased by 9.7% reaching $2.7 billion.
Blended same-restaurant sales increased by 2.8%.
Adjusted diluted net earnings per share increased by 21.1% to $1.84.
The company repurchased $181 million of its outstanding common stock.
Revenue by Segment
Forward Guidance
The Company updated its full year financial outlook for fiscal 2024 which includes Ruth's Chris operating results, but excludes approximately $55 million, pre-tax, of expected transaction and integration related costs associated with the acquisition.
Positive Outlook
- Total sales of approximately $11.5 billion
- Same-restaurant sales growth of 2.5% to 3.0%
- New restaurant openings of 50 to 55
- Total capital spending of approximately $600 million
- Total inflation of 3.0% to 3.5%
Challenges Ahead
- An effective tax rate of approximately 12% to 12.5%
- Adjusted diluted net earnings per share from continuing operations of $8.75 to $8.90, excluding approximately $0.37, after-tax, of Ruth's Chris transaction and integration related costs*
- Approximately 121.0 million weighted average diluted shares outstanding
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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