Darden Restaurants posts mixed quarter, shares slip; fiscal 2027 outlook light

According to CNBC, Darden Restaurants reported fiscal fourth-quarter results that were mixed, with Olive Garden and fine-dining same-store sales missing expectations and its fiscal 2027 earnings and revenue outlook coming in toward the low end of Wall Street projections. Shares fell more than 1% in morning trading. For the quarter ended May 31, the company reported adjusted earnings per share of $3.66 on revenue of $3.72 billion, compared with analyst expectations of $3.63 and $3.73 billion, respectively, based on LSEG. Net income rose to $404.9 million, or $3.51 per share, from $303.8 million, or $2.58 per share, a year earlier, while net sales increased 13.7% to $3.72 billion, helped by an extra week in the fiscal year. Same-store sales across Darden rose 4.6% versus StreetAccount expectations of 4.1%, led by LongHorn Steakhouse at 9.5% (vs. 7.1% expected), while Olive Garden grew 2.4% (vs. 3.2% expected) and the fine-dining segment rose 1.9% (vs. 3.1% expected). For fiscal 2027, Darden forecast total sales of $13.60 billion to $13.75 billion and net earnings per share from continuing operations of $11.10 to $11.35, compared with Wall Street expectations of $13.72 billion in revenue and $11.40 in EPS. The company also projected same-store sales growth of 2.5% to 3.5%, plans to open 75 to 80 new locations, and said 11 Bahama Breeze restaurants will be converted into locations for its other brands.