Darden Restaurants Inc DRI shares are trading higher Thursday morning after the company reported better-than-expected financial results, issued guidance above analyst estimates and announced a buyback.
Darden said fiscal fourth-quarter revenue increased 14.2% year-over-year to $2.6 billion, which beat the estimate of $2.54 billion, according to data from Benzinga Pro. The company said the increase was driven by a same-restaurant sales increase of 11.7%, as well as sales from 33 net new restaurants.
Darden reported quarterly earnings of $2.24 per share, which beat the estimate of $2.21 per share.
"As we begin our new fiscal year, our focus remains on driving profitable sales, investing in the guest experience and simplifying operations," said Rick Cardenas, president and CEO of Darden.
Darden said it expects full-year fiscal 2023 revenue to be between $10.2 billion and $10.4 billion versus the estimate of $9.57 billion. The company expects full-year earnings between $7.40 and $8 per share versus the estimate of $7.38 per share.
Darden also authorized a new $1 billion share repurchase program and declared a quarterly dividend of $1.21 per share.
Darden is a restaurant company featuring a portfolio of brands including Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V's.
DRI Price Action: Darden has traded between $164.27 and $110.96 over a 52-week period.
The stock was up 1.85% at $117.21 at time of publication.
Photo: courtesy of Darden.
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