Olive Garden’s parent company Darden beats profit estimates as sales surge

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An Olive Garden restaurant in Silverdale. Darden Restaurants, Inc., owner of Olive Garden and other restaurant chains, is expected to report fourth quarter 2022 results on June 23.

Toby Scott | Light flare | Getty Images

Darden Restaurants on Thursday reported quarterly earnings and revenue that beat analysts’ expectations, despite high inflation that weighed on its earnings.

Facing higher costs and other economic uncertainties, Olive Garden’s parent company released a mixed forecast for fiscal 2023.

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Shares of the company rose 1.6% in premarket trading.

Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:

  • Earnings per share: $2.24 vs. $2.21 expected
  • Revenue: $2.6 billion vs. $2.54 billion expected

Darden reported fiscal fourth-quarter net income of $281.7 million, or $2.24 per share, compared with $368.5 million, or $2.78 per share, a year earlier. Analysts polled by Refinitiv had expected earnings per share of $2.21.

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Net sales rose 14.2% to $2.6 billion, beating expectations of $2.54 billion. Company-wide, same-store sales climbed 11.7%, fueled by the rebound in its food business.

For fiscal 2023, Darden expects earnings per share from continuing operations of $7.40 to $8, below analysts’ expectations of $8.11. The company assumes that inflation will increase by 6% in the new fiscal year. Its revenue outlook of $10.2 billion to $10.4 billion is in line with Wall Street estimates of $10.22 billion.

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Darden also expects same-store sales growth of 4% to 6% and 50 to 60 new restaurants to open in fiscal 2023.

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