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Feb 26, 2023

Darden Q3 2023 Earnings Report

Darden's Q3 2023 financial results were reported, a quarterly dividend was declared, and the fiscal 2023 financial outlook was updated.

Key Takeaways

Darden Restaurants reported a 13.8% increase in total sales to $2.8 billion, driven by an 11.7% increase in blended same-restaurant sales and sales from 35 net new restaurants. Reported diluted net earnings per share increased 21.2% to $2.34. The company repurchased $124 million of its outstanding common stock.

Total sales increased 13.8% to $2.8 billion.

Blended same-restaurant sales increased 11.7%.

Diluted net earnings per share increased 21.2% to $2.34.

The Company repurchased $124 million of its outstanding common stock.

Total Revenue
$2.79B
Previous year: $2.45B
+13.8%
EPS
$2.34
Previous year: $1.93
+21.2%
Olive Garden same-store sales
12.3%
Previous year: 29.9%
-58.9%
LongHorn same-store sales
10.8%
Previous year: 31.6%
-65.8%
Fine Dining same-store sales
11.7%
Previous year: 85.8%
-86.4%
Gross Profit
$585M
Previous year: $502M
+16.5%
Cash and Equivalents
$275M
Previous year: $555M
-50.4%
Total Assets
$10.1B
Previous year: $10.2B
-1.3%

Darden

Darden

Darden Revenue by Segment

Forward Guidance

The Company updated its financial outlook:

Positive Outlook

  • Total sales of $10.45 to $10.5 billion
  • Same-restaurant sales growth of 6.5% to 7%
  • New restaurant openings of ~55
  • Total capital spending of $550 to $575 million
  • An effective tax rate of approximately 13%

Challenges Ahead

  • Total inflation of 7% to 7.5%
  • Diluted net earnings per share from continuing operations of $7.85 to $8.00
  • Approximately 123 million weighted average diluted shares outstanding

Revenue & Expenses

Visualization of income flow from segment revenue to net income