Darden Restaurants Q3 Highlights: Earnings Beat, 11.7% Comps Growth, Dividend, Revised FY23 Outlook & More

Darden Restaurants Inc DRI reported third-quarter FY23 sales growth of 13.8% year-on-year to $2.79 billion, beating the consensus of $2.73 billion. Same-restaurant sales increased 11.7%.
Darden clocked an operating margin of 12.5%, and the operating income rose 16.3% Y/Y to $349.9 million.
EPS of $2.34 beat the consensus of $2.25.
Darden generated an operating cash flow of $1.1 billion for nine months. It held $335 million in cash and equivalents as of Feb. 26, 2023.
Inventories at the end of Q3 were $305.9 million.
Darden's Board of Directors declared a quarterly cash dividend of $1.21 per share on the common stock, payable on May 1, 2023, to shareholders of record on Apr. 10, 2023.
As of Q3-end, the company had approximately $687 million remaining under the current $1 billion repurchase authorization.
"Our ability to invest in pricing below inflation over time provides strong value to our guests and reinforces the power of our strategy and our restaurant teams' commitment to being brilliant with the basics," said president and CEO Rick Cardenas.
Guidance: Darden sees FY23 sales of $10.45 billion - $10.5 billion (prior view $10.3 billion - $10.45 billion) versus the consensus of $10.42 billion.
DRI expects FY23 EPS from continuing operations of $7.85 - $8.00 (prior view $7.60 - $8.00) versus the consensus of $7.85.
Price Action: DRI shares are trading higher by 1.46% at $153.25 in premarket on the last check Thursday.
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