Darden Restaurants (NYSE:DRI) on Thursday reported earnings and revenue that topped analysts’ expectations in its first quarter as the owner of Ruth’s Chris Steak House.
But same-store sales of Darden’s fine-dining segment fell more than expected, signaling that consumers are spending less on upscale restaurant meals.
Earnings per share were revealed to be $1.78 adjusted, in contrast with the expected $1.74, on revenue of $2.73 billion, as opposed to the forecast $2.71 billion.
Darden reported fiscal first-quarter net income of $194.5 million, or $1.59 per share, up from $193 million, or $1.56 per share, a year earlier.
Excluding its acquisition of Ruth’s Chris, integration costs related to the deal and other items, the restaurant company earned $1.78 per share from continuing operations.
Net sales rose 11.6% to $2.73 billion.
Darden’s same-store sales, excluding those of Ruth’s Chris, rose 5% in the quarter.
The company won’t include Ruth’s Chris in its same-store sales results until it has owned the steakhouse chain for 16 months. The $715 million acquisition was completed in mid-June.
Darden also reiterated its outlook for fiscal 2024. The company is forecasting net sales of $11.5 billion to $11.6 billion, same-store sales growth of 2.5% to 3.5%, and adjusted earnings per share from continuing operations of $8.55 to $8.85.
DRI shares hiked 54 cents to $150.00
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