) expects total sales for the year clocking in between $9.55 billion and $9.62 billion, a less upbeat call than the company’s guidance issued in December, which predicted sales could go as high as $9.7 billion. Analysts polled by FactSet are expecting $9.61 billion in sales for that period.
Diluted earnings per share could range between $7.30 and $7.45, below previous guidance for $7.35 to $7.60 a share, and under analysts’ estimates for $7.51 per share.
The company is also expecting same-restaurant sales to rise between 29% and 30% year over year, with earnings before interest, taxes, depreciation, and amortization, or Ebitda, of between $1.53 billion and $1.55 billion. These figures were also slightly below previous guidance and consensus estimates.
Darden stock was up about 2% to $133.85 on Thursday. The shares have lost 11% this year.
Investors were also reacting to weaker-than-expected third-quarter results from Darden. The company posted diluted earnings of $1.93 per share on sales of $2.45 billion. Analysts were forecasting earnings of $2.10 a share and $2.5 billion in revenue.
“This was a quarter of stark contrasts and I’m pleased with our performance in this highly volatile environment,” said Gene Lee, Darden chairman and CEO. “It began with record sales in December. However, the Omicron variant significantly impacted guest demand, restaurant staffing and operating expenses in January.”
Darden repurchased $382 million of its outstanding common stock, and had $379 million remaining under the current repurchase authorization. The company declared a cash dividend of $1.10 per share.
Florida-based Darden also owns Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Bahama Breeze, Seasons 52, and Eddie V’s. The company plans to open a total of 35 restaurants throughout 2022.
Olive Garden Parent Darden Predicts Lower Sales This Year, but the Stock Is Up.
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In addition to Olive Garden and LongHorn Steakhouse, Darden owns brands such as Cheddar’s Scratch Kitchen, Yard House, and The Capital Grille.
Dreamstime.com
Shares of
Darden Restaurants
were rising Thursday, even after the Olive Garden and LongHorn Steakhouse parent company scaled back its financial forecasts for fiscal 2022,
Darden (ticker:
DRI
) expects total sales for the year clocking in between $9.55 billion and $9.62 billion, a less upbeat call than the company’s guidance issued in December, which predicted sales could go as high as $9.7 billion. Analysts polled by FactSet are expecting $9.61 billion in sales for that period.
Diluted earnings per share could range between $7.30 and $7.45, below previous guidance for $7.35 to $7.60 a share, and under analysts’ estimates for $7.51 per share.
The company is also expecting same-restaurant sales to rise between 29% and 30% year over year, with earnings before interest, taxes, depreciation, and amortization, or Ebitda, of between $1.53 billion and $1.55 billion. These figures were also slightly below previous guidance and consensus estimates.
Darden stock was up about 2% to $133.85 on Thursday. The shares have lost 11% this year.
Investors were also reacting to weaker-than-expected third-quarter results from Darden. The company posted diluted earnings of $1.93 per share on sales of $2.45 billion. Analysts were forecasting earnings of $2.10 a share and $2.5 billion in revenue.
“This was a quarter of stark contrasts and I’m pleased with our performance in this highly volatile environment,” said Gene Lee, Darden chairman and CEO. “It began with record sales in December. However, the Omicron variant significantly impacted guest demand, restaurant staffing and operating expenses in January.”
Darden repurchased $382 million of its outstanding common stock, and had $379 million remaining under the current repurchase authorization. The company declared a cash dividend of $1.10 per share.
Florida-based Darden also owns Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Bahama Breeze, Seasons 52, and Eddie V’s. The company plans to open a total of 35 restaurants throughout 2022.
Write to Sabrina Escobar at [email protected]
Source: https://www.barrons.com/articles/darden-restaurants-stock-earnings-forecast-51648123072?siteid=yhoof2&yptr=yahoo