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Feb 25, 2024
Darden Q3 2024 Earnings Report
Darden's Q3 2024 financial results were reported, featuring a dividend declaration and a new share repurchase program authorization.
Key Takeaways
Darden Restaurants reported a 6.8% increase in total sales to $3.0 billion, driven by the acquisition of Ruth's Chris and new restaurant openings, despite a 1.0% decrease in blended same-restaurant sales. Adjusted diluted net earnings per share from continuing operations increased by 12.0% to $2.62.
Total sales increased 6.8% to $3.0 billion.
Adjusted diluted net earnings per share from continuing operations were $2.62, a 12.0% increase.
The Board of Directors declared a quarterly cash dividend of $1.31 per share.
A new share repurchase program was authorized for up to $1 billion of outstanding common stock.
Darden
Darden
Darden Revenue by Segment
Revenue by Segment
Olive Garden Revenue
CapyFin.comLongHorn Steakhouse Revenue
CapyFin.comFine Dining Revenue
CapyFin.comOther Business Revenue
CapyFin.com Forward Guidance
Darden 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 $11.4 billion
- Same-restaurant sales growth of 1.5% to 2.0%
- New restaurant openings of 50 to 55
- An effective tax rate between 12.0% and 12.5%
- Adjusted diluted net earnings per share from continuing operations of $8.80 to $8.90, excluding approximately $0.35, after-tax, of Ruth's Chris transaction and integration related costs
Challenges Ahead
- Total capital spending of approximately $600 million
- Total inflation of approximately 3.0%
- Weighted average diluted shares outstanding approximately 121.0 million
- Exclusion of $55 million in pre-tax transaction and integration costs related to Ruth's Chris acquisition
- Unspecified risks and uncertainties detailed in Darden's SEC filings
Revenue & Expenses
Visualization of income flow from segment revenue to net income