Darden Sales Top $11 Billion On 9% Growth

Darden Restaurants saw full-year sales climb 8.6% to $11.4 billion in the 12 months through May 26, boosted by a 1.6% increase in same-store sales and the addition of 80 company-owned Ruth’s Chris restaurants along with 37 other net new locations across the portfolio.
Darden saw its best same-store growth in the LongHorn Steakhouse chain, which was up 4.7%, while Olive Garden grew 1.6% and the fine dining portfolio—which includes Ruth’s Chris, Capital Grille, and Eddie V’s—slipped 2.4% against the prior year.

Chief executive Rick Cardenas told analysts that some consumers are trading up from quick-service restaurants to casual dining outlets, despite a relatively weaker consumer environment. He added that Darden continues to outperform in the casual dining segment, leveraging TV ads while seeking to hold price increases behind the pace of inflation.

The company is targeting sales of $11.8 to $11.9 billion for its new fiscal year, with same-store gains of 1%-2%. In addition to the brands above, the Darden portfolio also includes Yard House, Seasons 52, Bahama Breeze, The Capital Burger, and Cheddar’s Scratch Kitchen.—Daniel Marsteller

Tagged : Capital Grille, Darden Restaurants, Eddie V's, LongHorn Steakhouse, Olive Garden, Ruth's Chris

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