{"id":76381,"date":"2024-09-19T13:00:20","date_gmt":"2024-09-19T13:00:20","guid":{"rendered":"http:\/\/guid_108036078"},"modified":"2024-09-19T13:00:20","modified_gmt":"2024-09-19T13:00:20","slug":"darden-restaurants-earnings-disappoint-as-olive-garden-fine-dining-sales-struggle","status":"publish","type":"post","link":"https:\/\/wp.timesamerica.net\/darden-restaurants-earnings-disappoint-as-olive-garden-fine-dining-sales-struggle\/","title":{"rendered":"Darden Restaurants earnings disappoint as Olive Garden, fine dining sales struggle"},"content":{"rendered":"\n<div><img decoding=\"async\" src=\"https:\/\/wp.timesamerica.net\/wp-content\/uploads\/2024\/09\/darden-restaurants-earnings-disappoint-as-olive-garden-fine-dining-sales-struggle.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"RelatedQuotes-relatedQuotes\" id=\"RegularArticle-RelatedQuotes\">\n<div class=\"RelatedQuotes-quotesContainer\">\n<div class=\"RelatedQuotes-titleAndTime undefined\">\n<p class=\"RelatedQuotes-text\">In this article<\/p>\n<\/div>\n<ul class=\"RelatedQuotes-list\">\n<li class=\"QuoteItem-item\" aria-label=\"Quote for null\"><span class=\"waslinkname\"><span class=\"QuoteItem-symbol\">DRI<\/span><\/span><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"RegularArticle-WatchlistDropdown\" data-analytics-id=\"RegularArticle-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/li>\n<\/ul>\n<\/div>\n<div class=\"RelatedQuotes-cfaButtonContainer\"><button id=\"ArticlePageTickerCreateAccountButton\" class=\"CreateFreeAccountButton-buttonContainer\"><span class=\"CreateFreeAccountButton-buttonText\"><span>Follow your favorite stocks<\/span><span class=\"CreateFreeAccountButton-buttonTextBold\">CREATE FREE ACCOUNT<\/span><\/span><\/button><\/div>\n<\/div>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107387659\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div class=\"InlineImage-imagePlaceholder\" style=\"padding-bottom:55.55555555555556%\">\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<\/div>\n<div>\n<div class=\"InlineImage-imageEmbedCaption\">A sign hangs on the front of an Olive Garden restaurant on June 22, 2023 in Chicago, Illinois.<\/div>\n<div class=\"InlineImage-imageEmbedCredit\">Scott Olsen | Getty Images<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><span class=\"waslinkname\">Darden Restaurants<\/span><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> on Thursday reported weaker-than-expected quarterly earnings and revenue as sales weakened at Olive Garden and its fine dining restaurants.<\/p>\n<p>&#8220;While we fell short of our expectations for the first quarter, I firmly believe in the strength of our business,&#8221; CEO Rick Cardenas said in a statement. &#8220;I am confident in the actions all our brand teams are taking to address their guests&#8217; needs, which do not compromise the long-term health of our business for short-term benefits.&#8221;<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>Shares of the company rose about 10% in premarket trading despite the results. Excluding Thursday&#8217;s gains, the stock has fallen 3% this year as investor concerns about the health of the consumer weigh on the restaurant industry at large.<\/p>\n<p>Here&#8217;s what the company reported for the quarter ended Aug. 25 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:<\/p>\n<ul>\n<li>Earnings&nbsp;per share: $1.75 adjusted vs. $1.83 expected<\/li>\n<li>Revenue: $2.76 billion vs. $2.8 billion expected<\/li>\n<\/ul>\n<p>Darden reported fiscal first-quarter net income of $207.2 million, or $1.74 per share, up from $194.5 million, or $1.59 per share, a year earlier.<\/p>\n<p>Excluding costs related to its <span class=\"waslinkname\">purchase of Tex-Mex chain<\/span> Chuy&#8217;s, the restaurant company earned $1.75 per share.<\/p>\n<p>Net sales<strong>&nbsp;<\/strong>rose 1% to $2.76 billion, but the company&#8217;s same-store sales declined 1.1% in the quarter. Traffic to its restaurants sharply fell in July but then improved, according to CFO Raj Vennam. Executives at other restaurant companies have also said that traffic struggled this summer, chalking it up to increased travel or diners growing even more cautious.<\/p>\n<div style=\"height:100%\" class=\"lazyload-placeholder\"><\/div>\n<p>Olive Garden&#8217;s same-store sales shrank 2.9% in the quarter. The chain is reviving its Never Ending Pasta Bowl later this month in the hopes of bringing back customers.<\/p>\n<p>Darden&#8217;s fine-dining segment, which includes Eddie V&#8217;s and The Capital Grille, reported same-store sales declines of 6%.<\/p>\n<p>LongHorn Steakhouse was the company&#8217;s only division to report same-store sales growth. The chain, a top performer in Darden&#8217;s portfolio since the pandemic, saw same-store sales growth of 3.7%.<\/p>\n<p>Darden bought Chuy&#8217;s Holdings in July for roughly $605 million, its second acquisition in two years.<strong> <\/strong>The company expects the Chuy&#8217;s deal to close in its fiscal second quarter, which is also when Ruth&#8217;s Chris Steak House&#8217;s results will appear in its same-store sales numbers. Darden bought Ruth&#8217;s Chris a little over a year ago.<\/p>\n<p>Despite the gloomy quarter, Darden reiterated its full-year outlook. For fiscal 2025, Darden is forecasting earnings per share from continuing operations of $9.40 to $9.60 and net sales of $11.8 billion to $11.9 billion.<\/p>\n<\/div>\n<div id=\"ArticleBody-MobileAdhesion\" class=\"MobileAdhesion-container\" data-module=\"mps-slot\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In this article DRI Follow your favorite stocksCREATE FREE ACCOUNT A sign hangs on the front of an Olive Garden restaurant on June 22, 2023 in Chicago, Illinois. Scott Olsen | Getty Images Darden Restaurants on Thursday reported weaker-than-expected quarterly earnings and revenue as sales weakened at Olive Garden and its fine dining restaurants. &#8220;While &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-76381","post","type-post","status-publish","format-standard","hentry","category-bussiness","no-thumb","no-post-featured"],"_links":{"self":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/76381"}],"collection":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/comments?post=76381"}],"version-history":[{"count":0,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/posts\/76381\/revisions"}],"wp:attachment":[{"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/media?parent=76381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/categories?post=76381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wp.timesamerica.net\/wp-json\/wp\/v2\/tags?post=76381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}