Darden Restaurants Reports $2.76 Billion in Q1 Sales

By Tamara Parker • Saturday, September 28 15:21 • Permanent Link

Darden Restaurants, Inc. has recently released its 10-Q report, providing insight into its financial performance for the quarter ended August 25, 2024. Darden Restaurants, Inc. operates full-service restaurants in the United States and Canada, including popular brands such as Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen.

In the first quarter of fiscal 2025, Darden Restaurants reported total sales of $2.76 billion, marking a 1.0% increase from the first quarter of fiscal 2024. Net earnings from continuing operations were $207.6 million, compared to $194.8 million in the same period last year. Diluted net earnings per share from continuing operations were $1.74, up from $1.60 in the first quarter of fiscal 2024.

Darden Restaurants also provided an outlook for fiscal 2025, expecting sales to be between $11.8 and $11.9 billion, driven by anticipated same-restaurant sales growth of 1.0 to 2.0% and approximately 45 to 50 new restaurant openings.

The company's segment results revealed that Olive Garden experienced a 1.5% decrease in same-restaurant sales, while LongHorn Steakhouse saw a 6.5% increase. Fine Dining reported a 2.0% increase in sales, primarily driven by the acquisition of Ruth’s Chris and revenue from new restaurants, offset by same-restaurant sales decreases. Other Business reported a 0.7% decrease in sales, primarily driven by same-restaurant sales decreases.

Darden Restaurants also discussed its seasonal sales fluctuations, noting that sales volumes typically peak in the winter and spring, followed by the summer, and are lowest in the fall.

In terms of liquidity and capital resources, Darden Restaurants primarily relies on cash flows generated from operating activities to finance capital expenditures for new restaurants, remodel and maintain existing restaurants, pay dividends, and repurchase shares of its common stock. The company also provided an overview of its credit ratings and outstanding debt, highlighting its compliance with all covenants under the Revolving Credit Agreement as of August 25, 2024.

Today the company's shares have moved -0.7% to a price of $166.71. If you want to know more, read the company's complete 10-Q report here.

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