Darden Q3 2024 Earnings Report
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.
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Darden Revenue by Segment
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