Darden Restaurants earnings beat, raises guidance

John Greenough

Shares of Darden Restaurants,  the owner of many US restaurant brands such as Olive Garden, jumped 3%ahead of Thursday’s opening bell after reporting quarterly results that beat on both the top and bottom lines and raising its full-year profit guidance.

The multi-brand restaurant operator earned an adjusted $1.34 per share for its first quarter, topping the $1.24 that analysts surveyed by Bloomberg were expecting. Total sales increased 6.5% versus a year ago to $2.06 billion, edging out the $2.03 billion that was anticipated. Meanwhile, comparable sales were up 3.3%, beating the 2.1% increase that was expected by analysts.

“We are pleased to report another quarter of strong results and market share gains,” CEO Gene Lee said in the press release. “Our competitive advantages continue to work hard for us, allowing us to invest in our people and brands to deliver exceptional guest experiences.”

Looking ahead, the company lifted its full-year profit guidance to between $5.52 and $5.65 per diluted share, up from its previous estimate of $5.40-$5.56. Analysts surveyed by the Bloomberg were expecting $5.56 per share. The company also estimates the full-year total sales to be $8.46 billion, topping the $8.44 billion that was expected.

Darden Restaurants is up 28% this year through Wednesday.

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