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Darden Restaurants (DRI) Q3 2023 earnings

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Customers enter an Olive Garden restaurant in Pittsburg, California, US, on Friday, Dec. 9, 2022.

David Paul Morris | Bloomberg | Getty Images

Darden Restaurants on Thursday raised its revenue outlook for fiscal 2023 for the second consecutive quarter after reporting quarterly┬аresults that showed growth across the board.

For fiscal 2023, Darden now expects sales of $10.45 billion to $10.5 billion, up from its prior range of $10.3 billion to $10.45 billion.

Darden CEO Rick Cardenas credited the quarter’s strong sales growth to its strategy of pricing below inflation. He said in a statement that the company’s sales and traffic outperformed the broader restaurant industry.

Here’s what the company reported for its most recent quarter:

  • Earnings┬аper share: $2.34
  • Revenue: $2.79 billion

Analysts surveyed by Refinitiv had expected EPS of $2.25 and revenue of $2.73 billion. It was not immediately clear whether Darden’s reported results were comparable to consensus estimates.

The restaurant company reported fiscal third-quarter net income of $286.6 million, or $2.34 per share, up from $247 million, or $1.93 cents per share, a year earlier.

Net sales┬аrose 13.8% to $2.79 billion, fueled by same-store sales growth of 11.7% across all of its brands, which include chains like Olive Garden, LongHorn Steakhouse and The Capital Grille. Wall Street was expecting same-store sales to increase just 9.1%, according to StreetAccount estimates.

Olive Garden, which accounted for nearly half of Darden’s quarterly revenue, reported same-store sales growth of 12.3%. LongHorn Steakhouse saw its same-store sales climb 10.8%. And its fine-dining business, which includes The Capital Grille, reported same-store sales growth of 11.7%.

Darden said it added 35 net new restaurants during the quarter.

In addition to hiking its revenue forecast, Darden narrowed its expected range for fiscal 2023 earnings to between $7.85 and $8 per share. The company also raised its inflation outlook to a range of 7% to 7.5%, up from its prior range of 7%.

Read the full Darden Restaurants earnings report.

This story is developing. Please check back for updates.

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