•
May 28, 2023

Darden Q4 2023 Earnings Report

Darden's Q4 2023 financial results were reported, showcasing increased sales and earnings per share.

Key Takeaways

Darden Restaurants reported a 6.4% increase in total sales to $2.8 billion for the fourth quarter of fiscal year 2023, driven by a 4.0% increase in same-restaurant sales and contributions from 47 net new restaurants. Reported diluted net earnings per share increased by 15.2% to $2.58.

Total sales increased by 6.4% to $2.8 billion.

Same-restaurant sales increased by 4.0%.

Diluted net earnings per share increased by 15.2% to $2.58.

The company repurchased $35.2 million of its outstanding common stock.

Total Revenue
$2.77B
Previous year: $2.6B
+6.4%
EPS
$2.58
Previous year: $2.24
+15.2%
Olive Garden same-store sales
4.4%
Previous year: 6.5%
-32.3%
LongHorn same-store sales
7.1%
Previous year: 10.6%
-33.0%
Fine Dining same-store sales
-1.9%
Previous year: 34.5%
-105.5%
Gross Profit
$603M
Previous year: $446M
+35.2%
Cash and Equivalents
$368M
Previous year: $421M
-12.6%
Total Assets
$10.2B
Previous year: $10.1B
+1.0%

Darden

Darden

Darden Revenue by Segment

Forward Guidance

Darden Restaurants provided its financial outlook for fiscal year 2024, which includes Ruth's Chris operating results but excludes approximately $55 million, pre-tax, of expected transaction and integration-related costs.

Positive Outlook

  • Total sales of $11.5 to $11.6 billion
  • Same-restaurant sales growth of 2.5% to 3.5%
  • New restaurant openings of approximately 50
  • An effective tax rate of approximately 12% to 12.5%
  • Adjusted diluted net earnings per share from continuing operations of $8.55 to $8.85, excluding approximately $0.34, after-tax, of Ruth's Chris integration related expenses

Challenges Ahead

  • Excludes approximately $55 million, pre-tax, of expected transaction and integration related costs associated with the acquisition.
  • Total capital spending of $550 to $600 million
  • Total inflation of 3% to 4%
  • Excluding approximately $0.34, after-tax, of Ruth's Chris integration related expenses
  • Approximately 121.5 million weighted average diluted shares outstanding

Revenue & Expenses

Visualization of income flow from segment revenue to net income