Darden restaurants On Friday he beat Wall Street's profit and income estimates, while the father of the Oliva Garden predicted a solid growth for fiscal year 2026.
This is what the company reported compared to what Wall Street expected, based on an LSEG analysts survey:
- Profit per action: $ 2.98 adjusted compared to $ 2.97 expected
- Revenue: $ 3.27 billion compared to $ 3.26 billion expected
Darden reported a fiscal net income of the fourth quarter of $ 303.8 million, or $ 2.58 per share, compared to $ 308.1 million, or $ 2.58 per share, a year earlier.
Excluding the costs related to the acquisition of Tex Mex of his Chuy, Darden won $ 2.98 per share for the three -month period that ended on May 25.
Net sales increased 10.6% to $ 3.3 billion, partially fed by acquiring 103 Chuy's restaurants and 25 new net restaurants.
Sales in the same company of the company based in Orlando, Florida, increased 4.6%, exceeding the estreetacount estreets of 3.5%.
For the full prosecutor 2026, Darden gave a forecast for income growth from 7% to 8%, including approximately 2% related to an additional week in the year. He expects adjusted profits to be in a range of $ 10.50 to $ 10.70 per share, including 20 cents related to the additional week.
Despite the signs that consumers withdraw from spending, said Darden Restaurants CEO Rick Cardenas, during a call on Friday with analysts that consumers continue to spend on informal dinners.
“Our consumers want to leave and spend their money earned so much effort. And we believe we are taking some fast food wallet and fast chance,” he said.
The two outstanding brands of Darden, Olive Garden and Larchorn Steakhouse, reported a sales growth in the same store that exceeded expectations. Olive Garden, which represents approximately 40%of Dardan's quarterly revenues, saw 6.9%of sales in the same store, exceeding the expectations of analysts of 4.6%. Sales of the same Lonhorn store increased 6.7%, while analysts anticipated a growth of 5.3%.
Cárdenas accredited Darden's sales during the quarter, in part, on the return of the “Olive Garden” agreement after five years, which offers customers a meal to accompany their food.
Darden's restoration segment, which includes Chris Steak House of Ruth and the capital grid, reported a decrease in sales in the same 3.3% store, compared to the fall of 0.2% expected.
The CFO Raj Vennam told analysts about the call on Friday that the excellent food category as a whole continues to be challenged, but the company is seeing an improvement in the traffic of guests of households that earn $ 150,000 or more.
The remaining segment of the company, which includes the House Scratch Kitchen and Yard of Cheddar, saw a sales growth in the same 1.2%store, compared to 1.1%estimates.
In March, Cheddar's Scratch kitchen became the next Darden brand, after Olive Garden, in driving delivery at request through an association with Super Straight. Since last week, delivery is available in all but eight restaurants in Cheddar, Cardenas said on Friday's call.
In addition to Darden closing 15 Bahama Breeze restaurants during the quarter, Cardenas said the company will consider “strategic alternatives” for the entire Bahama Breeze brand, including a potential sale or converting the locations to other brands of Darden.
He said during the call that the Bahama Breeze brand is not a “strategic priority” for Darden and that he has the potential to benefit from a new owner.
The company also announced that on Wednesday, its Board of Directors authorized a shares of $ 1 billion shares, which does not have an expiration date and replaces the authorization to repurchase previously existing shares.
Darden Restaurants actions rose more than 1% in the negotiation on Friday. From Wednesday, the shares increased approximately 19% to date.
