Darden Restaurants' Q3 Earnings Miss Estimates Bitten By Omicron

Darden Restaurants Inc DRI reported third-quarter FY22 sales growth of 41.3% year-on-year, to $2.45 billion, missing the consensus of $2.51 billion. Same-restaurant sales increased 38.1%.
Darden clocked an operating margin of 12.3%, and the operating income jumped 103.4% Y/Y to $301 million. EBITDA was $395 million.
EPS of $1.93 missed the consensus of $2.12.
Darden generated an operating cash flow of $916.5 million during the nine months. It held $606.8 million in cash and equivalents as of February 27, 2022.
The number of company-owned restaurants rose by 33 to 1,855.
Darden's Board of Directors declared a quarterly cash dividend of $1.10 per share on the common stock, payable on May 2, 2022, to shareholders of record on April 8, 2022.
"It began with record sales in December. However, the Omicron variant significantly impacted guest demand, restaurant staffing and operating expenses in January," said Chairman and CEO Gene Lee.
Guidance: Darden sees FY22 sales of $9.55 billion – $9.62 billion versus the consensus of $9.61 billion.
It expects FY22 EPS of $7.30 - $7.45, below the consensus of $7.50.
The restaurant chain expects same-restaurant sales growth of 29%-31% versus FY21.
Price Action: DRI shares are trading lower by 1.67% at $128.75 in premarket on the last check Thursday.

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