Tags: Olive Garden | Darden | Earnings | Profit

Olive Garden Owner Darden's Quarterly Profit Beats Estimates

Friday, 20 Mar 2015 09:11 AM

 
Olive Garden owner Darden Restaurants Inc. reported a quarterly profit above analysts' estimates due to cost-cutting and better-than-expected sales at its chains such as LongHorn Steakhouse and Yard House.
 
The company's shares rose 6 percent to $68.75 in premarket trading after the company also forecast a fourth-quarter adjusted profit above average analyst estimate.
 
Darden forecast adjusted earnings of 91-94 cents per share from continuing operations for the quarter ending May. Analysts on average were expecting 89 cents, according to Thomson Reuters I/B/E/S.
 
The company also said it now expects U.S. same-restaurant sales to rise 2-2.5 percent for the year ending May, up from its previous forecast of 1-2 percent growth.
 
Customer visits have been falling for more than a year at Olive Garden, which accounts for more than half of Darden's revenue.
 
Same-restaurant sales at Olive Garden rose 2.2 percent in the third quarter, compared with a 2.4 percent rise expected by analysts polled by research firm Consensus Metrix.
 
However, same-restaurant sales at LongHorn Steakhouse, Darden's second-largest chain, rose 5.4 percent, well above analysts' estimate of 3.6 percent.
 
Darden said in December it was trying to cut costs at its restaurants. The company has also said it will boost alcohol sales and eliminate "false waits" for tables as suggested by activist investor Starboard Value LP.
 
Darden's sales rose 7 percent to $1.73 billion in the third quarter ended Feb. 22.
 
Net income rose to $133.8 million, or $1.05 per share, from $109.7 million, or 82 cents per share.
 
Excluding items, it earned 99 cents per share from continuing operations.
 
Analysts on average had expected 84 cents per share on revenue of $1.72 billion.

© 2017 Thomson/Reuters. All rights reserved.

 
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Olive Garden owner Darden Restaurants Inc. reported a quarterly profit above analysts' estimates due to cost-cutting and better-than-expected sales at its chains such as LongHorn Steakhouse and Yard House. The company's shares rose 6 percent to $68.75 in premarket trading...
Olive Garden, Darden, Earnings, Profit
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2015-11-20
Friday, 20 Mar 2015 09:11 AM
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