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May 26, 2024
Darden Q4 2024 Earnings Report
Darden's Q4 2024 performance was driven by new restaurant additions and mixed same-restaurant sales, with adjusted EPS increasing slightly despite cost pressures.
Key Takeaways
Darden Restaurants reported a 6.8% increase in total sales to $3.0 billion for the fourth quarter of fiscal year 2024, driven by the addition of 80 Ruth's Chris Steak House restaurants and 37 other net new restaurants. Same-restaurant sales were flat overall, with LongHorn Steakhouse showing positive growth while Olive Garden and Fine Dining declined. Adjusted diluted net earnings per share increased by 2.7% to $2.65, excluding Ruth's Chris transaction and integration costs.
Total sales increased by 6.8% to $3.0 billion, driven by new restaurant additions.
Same-restaurant sales were flat, with varied performance across different brands.
Adjusted diluted net earnings per share increased by 2.7% to $2.65.
The company repurchased $97.3 million of its outstanding common stock.
Revenue by Segment
Forward Guidance
Darden Restaurants provided its financial outlook for fiscal year 2025, anticipating total sales between $11.8 and $11.9 billion and same-restaurant sales growth of 1.0% to 2.0%.
Positive Outlook
- Total sales of $11.8 to $11.9 billion
- Same-restaurant sales growth of 1.0% to 2.0%
- New restaurant openings of 45 to 50
- Effective tax rate of approximately 13%
- Diluted net earnings per share from continuing operations of $9.40 to $9.60
Challenges Ahead
- Total inflation of approximately 3.0%
- Excludes Ruth's Chris Steak House from same-restaurant sales calculations at the beginning of Fiscal Year 2025.
- Total capital spending of $550 to $600 million
- Approximately 119 million weighted average diluted shares outstanding
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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