- Darden Restaurants Inc (NYSE: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.
