Darden Restaurants (DRI) has reported quarterly financial results that beat Wall Street estimates and raised its forward guidance.
The company that owns the Olive Garden and LongHorn Steakhouse restaurant chains announced earnings per share (EPS) of $1.84 U.S. versus $1.74 U.S. that had been expected.
Revenue in what was the company’s fiscal second quarter came in at $2.73 billion U.S. compared to $2.74 billion U.S. that was forecast among analysts.
Darden’s sales were up 9.7% from a year earlier, which the company attributed to the inclusion of Ruth’s Chris Steak House locations in its earnings.
Olive Garden’s same-restaurant sales increased 4.1%, while LongHorn Steakhouse saw 4.9% growth during the quarter.
Darden completed its acquisition of Ruth’s Hospitality Group, owner of chain restaurant Ruth’s Chris Steak House, in June of this year. This was the first time that Ruth’s Chris Steak House was included in Darden’s earnings.
Looking ahead, the company also updated its fiscal year 2024 outlook, forecasting EPS of $8.75 U.S. to $8.90 U.S., up from previous guidance of $8.55 U.S. to $8.85 U.S. per share.
Darden also forecast $11.5 billion U.S. in sales for its current fiscal year.
The stock of Darden Restaurants has gained 17% in 2023 and trades at $163.09 U.S. per share.
