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Feb 27, 2022

Darden Q3 2022 Earnings Report

Reported a quarter of stark contrasts with strong sales in February as the environment improved.

Key Takeaways

Darden Restaurants reported a 41.3% increase in total sales to $2.45 billion, driven by a 38.1% increase in blended same-restaurant sales and the addition of 33 net new restaurants. Diluted net earnings per share from continuing operations was $1.93, and net earnings from continuing operations were $247 million.

Total sales increased 41.3% to $2.45 billion, driven by a blended same-restaurant sales increase of 38.1%.

Diluted net earnings per share from continuing operations was $1.93, compared to $0.98 last year.

Net earnings from continuing operations were $247 million.

The Company repurchased $382 million of its outstanding common stock.

Total Revenue
$2.45B
Previous year: $1.73B
+41.3%
EPS
$1.93
Previous year: $0.98
+96.9%
Olive Garden same-store sales
29.9%
Previous year: -25.8%
-215.9%
LongHorn same-store sales
31.6%
Previous year: -12.6%
-350.8%
Fine Dining same-store sales
85.8%
Previous year: -45.2%
-289.8%
Gross Profit
$502M
Previous year: $337M
+48.7%
Cash and Equivalents
$555M
Previous year: $994M
-44.1%
Total Assets
$10.2B
Previous year: $10.1B
+1.1%

Darden

Darden

Darden Revenue by Segment

Forward Guidance

The Company updated its financial outlook for fiscal 2022 based on year-to-date results and its expected performance for the remainder of the year, assuming no significant business interruptions related to COVID-19.

Positive Outlook

  • Total sales of approximately $9.55 to $9.62 billion
  • Total sales growth vs. Pre-COVID of 9% to 10%
  • Same-restaurant sales vs. fiscal 2021 of 29% to 30%
  • Approximately 35 new restaurant openings
  • Effective tax rate of approximately 13.5%

Challenges Ahead

  • Total capital spending of approximately $425 million
  • Total inflation of approximately 6%
  • EBITDA between $1.53 to $1.55 billion
  • Diluted net earnings per share from continuing operations of $7.30 to $7.45
  • Approximately 129 million weighted average diluted shares outstanding

Revenue & Expenses

Visualization of income flow from segment revenue to net income