Close

Olive Garden, LongHorn owner Darden Restaurants (DRI) beats, raises guidance

December 16, 2022 8:58 AM EST
Get Alerts DRI Hot Sheet
Price: $169.51 +0.62%

Rating Summary:
    28 Buy, 15 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 26 | New: 20
Join SI Premium – FREE

Darden Restaurants (NYSE: DRI) reported better-than-expected results to send its shares modestly higher in pre-market Friday.

The company, which operates restaurant chains Olive Garden and LongHorn Steakhouse, posted FQ2 EPS of $1.52 on revenue of $2.49 billion (up 9.4% year-over-year), beating the average analyst consensus for earnings of $1.43 per share on revenue of $2.43B.

Comparable sales at Olive Garden and LongHorn increased by 7.6% and 7.3%, respectively. Overall, the company said it exceeded $10 billion in sales on a trailing 52-week basis for the first time in its history.

Darden’s new guidance sees full-year EPS in the range of $7.60 and $8.00, beating the consensus of $7.71. Full-year revenue is seen between $10.3B and $10.45B, again higher than the consensus of $10.31B. Comparable sales are expected to increase in the range of 5-6.5% while analysts were expecting DRI to guide for a 4.7% increase.

Darden was previously calling for revenue and comparable sales in the range of $10.2-10.4B and 4-6%, respectively.

Cowen analyst Andrew Charles reflected positively on Darden’s FQ2 results and raised guidance.

“We are pleased with Olive Garden's acceleration and LongHorn's stability in a tough backdrop for lower income consumers that led to a top-line driven EPS beat. DRI raised 2023 EPS guidance to $7.60-$8 from $7.40-$8, driven by a stronger SSS outlook and lower tax rate & share count, offset by 1% higher total inflation. We believe DRI is setting the stage to continue to beat & raise in 2023,” Charles said in a client note.

Goldman Sachs analyst Jared Garber added:

“We expect the stock to outperform today given F2Q beat, strong SSS trends at OG, and guidance raise.”

By Senad Karaahmetovic



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Earnings, Guidance, Hot Guidance, Hot List

Related Entities

Goldman Sachs, Cowen & Co, Earnings, Senad Karaahmetovic