Darden Restaurants (DRI) Q1 2023 earnings

Darden Restaurants on Thursday reported mixed quarterly results but still reiterated its outlook for fiscal 2023.

The parent company of Olive Garden and LongHorn Steakhouse said net sales for the quarter rose 6.1% to $2.45 billion, which was lighter than Wall Street’s expectations. Same-store sales increased 4.2% in the quarter. CEO Rick Cardenas said in a statement that Darden saw seasonal changes to demand return to the business.

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Darden has previously said it plans to price below rivals and limit how much of its increased costs it passes on to diners. The company’s costs for food, beverages and labor climbed during the latest quarter, weighing on its operating profit.

Shares of the company fell 2% in premarket trading.

Here’s what the company reported for the quarter ended Aug. 28 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: $1.56, meeting estimates
• Revenue: $2.45 billion vs. $2.47 billion expected

Net income for the period was $193 million, or $1.56 per share, down from $230.9 million, or $1.75 per share, a year earlier.

For its fiscal 2023, Darden expects earnings per share from continuing operations of $7.40 to $8. The company is assuming that inflation will rise 6% in the new fiscal year. It’s projecting revenue of $10.2 billion to $10.4 billion.

Darden is also expecting same-store sales growth of 4% to 6% and 50 to 60 new restaurant openings in fiscal 2023.

This is a breaking news story. Please check back for updates.