Darden Restaurants (NYSE:DRI) on Thursday reported quarterly earnings that topped Wall Street’s expectations, fueled by strong LongHorn Steakhouse sales.
The company also announced that former CEO Gene Lee plans to step down as chair of the board. Lee retired a little over a year ago as chief executive. He won’t stand for reelection at the company’s annual shareholder meeting, which is scheduled for Sept. 20.
“I am proud of what we have accomplished and believe that Darden is well-positioned to continue to grow and prosper for years to come,” Lee said in a statement.
Earnings per share proved $2.58 vs. $2.54 expected. Revenue: $2.77 billion, meeting expectations
Darden reported fiscal fourth-quarter net income of $315.1 million, or $2.58 per share, up from $281.7 million, or $2.24 per share, a year earlier.
Net sales rose 6.4% to $2.77 billion.
The company’s same-store sales increased 4%, led by strong performance by LongHorn Steakhouse. The steakhouse chain reported same-store sales growth of 7.1%, topping StreetAccount estimates of 4.9%.
But Olive Garden, which accounts for roughly 45% of Darden’s sales, reported weaker-than-expected performance for the quarter. The Italian chain’s same-store sales rose 4.4%, falling short of expectations of 5% growth.
Darden’s fine-dining segment reported same-store sales declines of 1.9%. The division includes The Capital Grille and Eddie V’s.
DRI shares turfed $4.23, or 2.5%, to $162.22.
