Darden Restaurants Lifts FY18 Earnings View Above Market; Backs Sales Forecast

(RTTNews) - Darden Restaurants, Inc., (DRI) Monday increased its outlook for adjusted net earnings per share from continuing operations for fiscal 2018 to $4.70 to $4.78, including plans to make an investment of approximately $20 million in its workforce during fiscal 2018.

The company previously expected adjusted net earnings per share from continuing operations of $4.45 to $4.53.

On average, 27 analysts polled by Thomson Reuters expect earnings of $4.57 per share for the year. Analysts' estimates typically exclude special items.

The company also announced the fiscal 2018 anticipated financial impacts of H.R. 1, originally known as the Tax Cuts and Jobs Act enacted on December 22, 2017.

During the third quarter ending February 25, the Company will be required to revalue its deferred tax assets and deferred tax liabilities to account for the future impact of lower corporate tax rates on these deferred amounts. Based upon preliminary analysis, the Company estimates that it will record non-cash net tax benefits of approximately $70 million, or approximately $0.56 per share, related to the revaluation of these deferred tax items.

For the year, the company continues to expect total sales growth of approximately 13% and same-restaurant sales growth of about 2 percent.

CEO Gene Lee said, "During the remainder of fiscal 2018, we will invest approximately $20 million in initiatives directly benefitting our workforce. This investment will strengthen one of our most important competitive advantages - a results-oriented culture - as we continue to improve on the guest experience, and position Darden and our brands for long-term success."