Darden Restaurants (NYSE:DRI) on Friday reported quarterly earnings and revenue that topped analysts’ expectations, leading the company to raise its sales and earnings forecast for the rest of fiscal 2022.
The Olive Garden parent also announced that CEO Gene Lee will retire May 29. The board elected Chief Operating Officer Rick Cardenas as its next chief executive. Cardenas, who previously served as chief financial officer, will join the board on May 30.
Lee will stick around as executive chairman until the next shareholder vote, when he is expected to be reelected as non-executive chairman.
Lee has served as CEO since February 2015. He joined Darden in 2007 as part of the company’s acquisition of Rare Hospitality International. Cardenas has worked for Darden even longer, starting in 1984 as an hourly worker before becoming an auditor for the company and working his way up.
Darden reported fiscal second-quarter net income of $193.2 million, or $1.48 per share, up from $96 million, or 73 cents per share, a year earlier. Analysts were expected earnings per share of $1.43.
Net sales rose 37% to $2.27 billion, topping expectations of $2.23 billion. Across the company, same-store sales surged 34.4%, rebounding from last year’s weak performance.
Olive Garden, which accounts for nearly half of Darden’s revenue, saw its same-store sales climb 29.3%. LongHorn SteakHouse’s same-store sales increased by 31.2%. The two chains have been
Darden’s top performers throughout the pandemic, boosted by their healthy to-go business.
DRI shares dwindled $11.12, or 7.6%, to $136.00
Related Stories
