An Olive Garden restaurant in Silverdale. Darden Restaurants, Inc. which owns Olive Garden and other restaurant chains is scheduled to report its fourth-quarter 2022 earnings on June 23.
Toby Scott | Lightrocket | Getty Images
Darden Restaurants on Thursday reported quarterly earnings and revenue that beat analysts’ expectations, despite experiencing high inflation that weighed on its profits.
In the face of higher costs and other economic uncertainty, Olive Garden’s parent company issued a mixed forecast for fiscal 2023.
Shares of the company rose 1.6% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.24 vs. $2.21 expected
- Revenue: $2.6 billion vs. $2.54 billion expected
Darden reported fiscal fourth-quarter net income of $281.7 million, or $2.24 per share, down from $368.5 million, or $2.78 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $2.21.
Net sales rose 14.2% to $2.6 billion, topping expectations for $2.54 billion. Across the company, same-store sales climbed 11.7%, fueled by the rebound of its fine-dining business.
For fiscal 2023, Darden is expecting earnings per share from continuing operations of $7.40 to $8, falling short of analysts’ expectations of $8.11. The company is assuming that inflation will rise 6% in the new fiscal year. Its revenue outlook of $10.2 billion to $10.4 billion is in line with Wall Street’s estimates for $10.22 billion.
Darden is also expecting same-store sales growth of 4% to 6% and 50 to 60 new restaurant openings in fiscal 2023.