Olive Garden parent narrowly misses estimates as consumers remain pressured
DRI•DRI•DRI•DRI•Darden Restaurants narrowly missed first-quarter sales and profit estimates, with sales of $3.20 billion and adjusted earnings of $2.05 per share. The company reaffirmed its annual targets; shares fell about 5% in premarket trading.
Darden's first-quarter sales rose 5.1% to $3.20 billion, below analysts' $3.21 billion estimate. Adjusted profit from continuing operations climbed 4.1% to $2.05 per share, missing the $2.06 average estimate.
Same-restaurant sales at Olive Garden rose 1.1%, slowing from 5.9% growth a year earlier, while LongHorn Steakhouse sales rose 6.2%, compared with 5.5% growth a year earlier. Darden reaffirmed its annual same-restaurant sales growth outlook of 2.5% to 3.5% and earnings-per-share outlook of $11.10 to $11.35.
The company said budget-conscious diners curtailed restaurant spending and prioritized value-focused purchases. The article cited inflation, gasoline prices and the economic outlook as factors making consumers more selective.
