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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.
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 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
- Weakening conditions that emerged in the back half of the year
Revenue & Expenses
Visualization of income flow from segment revenue to net income