Darden Restaurants (DRI) Q1 2023 earnings

An order of breadsticks from a Darden Restaurants Inc. Olive Garden

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

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

Darden reported fiscal first-quarter net income of $193 million, or $1.56 per share, down from $230.9 million, or $1.75 per share, a year earlier. The company’s costs for food, beverages and labor climbed, weighing on its operating profit.

Net sales rose 6.1% to $2.45 billion, which was lighter than Wall Street’s expectations. The company’s 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.

The company has previously said it’s sticking to its strategy of pricing below rivals and limiting how much of its increased costs it passes on to diners.

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.

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