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Darden Restaurants stock soars on upbeat guidance; Q2 results come in line

Published 19/12/2024, 13:16
DRI
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Investing.com -- Darden Restaurants (NYSE:DRI) saw its shares jump over 9% in premarket trading Thursday after the restaurant operator posted fiscal Q2 results that marginally exceeded analyst expectations.

The company reported quarterly adjusted earnings per share (EPS) from continuing operations of $2.03, just above the consensus estimate of $2.02.

Sales totaled $2.89 billion, a 6% year-over-year increase and slightly ahead of the $2.87 billion forecast.

Comparable sales rose 2.4%, outperforming expectations of a 1.45% increase but falling short of the 2.8% growth recorded in the prior year.

Operating income reached $292.1 million, up 4.9% year-over-year but below the $315.7 million analysts had projected.

"We had a strong quarter and I am pleased that our four largest brands – Olive Garden, LongHorn Steakhouse, Yard House and Cheddar's Scratch Kitchen – generated positive same-restaurant sales, as did three of our four business segments," said Darden President & CEO, Rick Cardenas.

"I continue to believe in the power of our strategy and our brands' ability to compete effectively regardless of the environment. Each of our brand leadership teams are focused on the long term and staying committed to executing at the highest level."

For guidance, Darden said it expects full-year EPS of $9.40 to $9.60, with the midpoint surpassing analyst estimates of $9.42.

Annual revenue is expected to be at $12.1 billion, also above the $11.94 billion estimated by analysts.

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