Darden keeps annual guidance as Olive Garden growth trails LongHorn

Darden Restaurants ($DRI) grew fiscal first-quarter sales 5.1% to $3.2 billion. Same-restaurant sales rose 3.1% on its fiscal-calendar measure, with LongHorn Steakhouse up 6.2% and Olive Garden up 1.1%. Net income nevertheless declined to $233.4 million from $257.8 million, illustrating that higher sales did not translate into stronger reported bottom-line earnings.

Earnings from continuing operations were $2.05 per share, compared with $2.19 reported a year earlier, or $1.97 after the prior year’s adjustments. Darden reaffirmed its full-year continuing-operations earnings outlook of $11.10–11.35 per share. It also declared a $1.62 quarterly dividend and reported $222.3 million of share repurchases, including excise tax. The update maintains annual expectations rather than raising them.

Sources:

• Darden — fiscal first-quarter results and outlook