Darden Restaurants Surpasses Expectations with 6.8% Sales Growth and Strong Expansion Strategy

Orlando, Florida United States of America
Darden continued its share repurchase program, buying back approximately $97.3 million of common stock during the quarter.
Darden Restaurants reported Q4 2024 earnings and revenue surpassing expectations with a 6.8% sales growth.
LongHorn Steakhouse demonstrated robust performance with a 4.0% increase in same-restaurant sales.
Looking ahead to FY2025, Darden anticipates revenue between $11.8 billion and $11.9 billion.
Total sales increased to $3 billion, driven by the addition of 80 company-owned Ruth's Chris Steak House restaurants and other net new restaurants.
Darden Restaurants Surpasses Expectations with 6.8% Sales Growth and Strong Expansion Strategy

Darden Restaurants, the parent company of Olive Garden and LongHorn Steakhouse, reported stronger-than-expected earnings and revenue for the fourth quarter of fiscal 2024. The company's stock price rose following the announcement.

For Q4 2024, Darden posted adjusted earnings per share (EPS) of $2.65, surpassing analyst estimates of $2.61. Total sales increased by 6.8% to $3 billion, exceeding the estimate of $2.98 billion.

The growth was driven by the addition of 80 company-owned Ruth's Chris Steak House restaurants and 37 other net new restaurants, as well as a disciplined approach and focus on fundamentals.

Looking ahead to FY2025, Darden anticipates revenue to be between $11.8 billion and $11.9 billion, significantly higher than the analyst consensus of $11.4 billion.

Despite mixed same-restaurant sales with Olive Garden and Fine Dining segments showing declines of 1.5% and 2.6% respectively, the overall increase in total sales indicates a strong expansion strategy.

LongHorn Steakhouse demonstrated robust performance with a 4.0% increase in same-restaurant sales.

The company also declared a quarterly cash dividend of $1.40 per share and continued its share repurchase program, buying back approximately $97.3 million of its common stock during the quarter.

Darden Restaurants has been cautious about offering meal deals or discounts unlike other chains in the industry, instead making moderate pricing increases to keep restaurant traffic strong.


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Confidence

90%

Doubts
  • Are there any specific reasons for the decline in same-restaurant sales for Olive Garden and Fine Dining segments?
  • Is Darden's cautious approach to meal deals and discounts sustainable in the long term?

Sources

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Darden beats on earnings, even as Olive Garden, fine-dining sales drag

CNBC News Amelia Lucas Thursday, 20 June 2024 11:21
  • Unique Points
    • Darden Restaurants reported mixed quarterly results for the fiscal year ending May 26, 2023.
    • LongHorn Steakhouse was the only segment to report same-store sales growth, with a rise of 4% in the quarter.
    • Net sales rose by 6.8% to $2.96 billion due to the purchase of Ruth’s Chris and 37 other net new locations.
    • CEO Rick Cardenas stated that consumers are concerned about inflation and the job market, but Olive Garden and LongHorn Steakhouse diners are more willing to spend on pricier entrees and alcoholic drinks.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The author makes an appeal to authority when quoting CEO Rick Cardenas stating 'We're not going to do things to buy sales, even with the increased discounting our competitors are doing. ... Our focus is on profitable sales growth.' This implies that Darden's strategy is superior because they are not engaging in discounting like their competitors. However, this does not necessarily mean that their strategy is more effective or profitable in the long term.
    • ]We're not going to do things to buy sales, even with the increased discounting our competitors are doing. ... Our focus is on profitable sales growth.[
    • The company expects to raise prices about 2% to 3%, mirroring overall inflation.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

85%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Why Olive Garden doesn’t want to give discounts

WRAL News Unknown WRAL Thursday, 20 June 2024 19:07
  • Unique Points
    • Olive Garden’s parent company, Darden Restaurants, has not offered meal deals or discounts unlike other chains.
    • Olive Garden has made moderate pricing increases instead of deep discounts.
    • In the most recent quarter, Olive Garden raised prices by 1% which hurt dollar sales but kept restaurant traffic strong.
    • Next year, executives expect Olive Garden to once again raise prices below Darden’s brands overall.
  • Accuracy
    • Olive Garden's parent company, Darden Restaurants, has not offered meal deals or discounts unlike other chains.
  • Deception (30%)
    The article makes selective reporting by focusing on the fact that Olive Garden is not offering discounts while ignoring the fact that they are raising prices. The author also uses emotional manipulation by implying that customers are 'fuming' over higher prices and using quotes from TikTok as evidence, even though there is no direct quote from an angry customer in the article.
    • Customers have recently started to fume over higher prices, particularly at fast food restaurants.
    • The grumblings reached such a fever pitch that chains like Applebee’s and Chili’s have made a bid for those customers, offering deals that they say put their prices on par with those at popular fast food chains.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Darden shares climb as Q4 earnings and revenue top estimates

Investing.com Financial Markets Platform Unknown Investing.com Thursday, 20 June 2024 22:07
  • Unique Points
    • Darden Restaurants reported earnings and revenue for Q4 2024 that surpassed analyst estimates.
    • Total sales increased by 6.8% to $3 billion, exceeding the estimate of $2.98 billion.
    • The growth was due in part to the addition of 80 company-owned Ruth’s Chris Steak House restaurants and 37 other net new restaurants.
    • President and CEO Rick Cardenas attributed the strong performance to a disciplined approach and focus on fundamentals.
    • FY2025 revenue is anticipated to be between $11.8 billion and $11.9 billion, significantly higher than the analyst consensus of $11.4 billion.
    • Approximately $97.3 million of common stock was bought back during the quarter.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Darden (DRI) Q2 Earnings: What To Expect

Yahoo Finance Radek Strnad Thursday, 20 June 2024 22:08
  • Unique Points
    • Darden (DRI) will announce Q2 earnings results tomorrow.
    • Revenue for Q2 is expected to be $2.97 billion, a 7.3% increase year on year.
  • Accuracy
    • Net sales rose by 6.8% to $2.96 billion due to the purchase of Ruth’s Chris and 37 other net new locations.
    • Total inflation is projected to be 3% and same-store sales growth is anticipated to be between 1% and 2% in fiscal 2025.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Darden (DRI) to Report Q4 Earnings: What's in Store?

Yahoo Finance Zacks Equity Thursday, 20 June 2024 22:09
  • Unique Points
    • Darden Restaurants, Inc. (DRI) is scheduled to report fourth-quarter fiscal 2024 results on June 20.
    • The Zacks Consensus Estimate for earnings is pegged at $2.62 per share, indicating growth of 1.6% from the prior-year levels.
    • Sales at LongHorn Steakhouse, Fine Dining and Other revenues are predicted to increase 0.2%, 79.5% and 5.7% respectively from the year-earlier levels.
    • DRI has been benefitting from technological enhancements with reference to online ordering. Off-premise sales are expected to improve in the near term.
    • Total operating costs and expenses are predicted to rise 7.5% from the year-ago tally to $2,573.1 million.
  • Accuracy
    • Olive Garden revenues are expected to decrease 0.4% from the prior-year actuals.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (90%)
    The article contains an appeal to authority in the form of the Zacks Consensus Estimate and the predictions made by their model. However, no fallacies were found that significantly impacted the overall quality of the article.
    • ][The Zacks Consensus Estimate for earnings is pegged at $2.62 per share, indicating growth of 1.6% from the prior-year levels.][][Our model predicts sales at LongHorn Steakhouse, Fine Dining and Other revenues to increase 0.2%, 79.5% and 5.7% from the year-earlier levels to $713.2 million, $376.6 million and $611.4 million, respectively.][][Our proven model doesn't conclusively predict an earnings beat for Darden this time around.]
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication