Darden Restaurants Lifts FY24 Adj.EPS View, But Cuts Sales Forecast; Stock Down In Pre-market

(RTTNews) - Darden Restaurants Inc. (DRI), while reporting higher third-quarter results, on Thursday raised the lower end of its adjusted earnings outlook for fiscal 2024. Meanwhile, the firm trimmed its forecast for total sales as well as Same-restaurant sales growth.

In pre-market activity on the NYSE, Darden shares were losing around 5.5 percent to trade at $165.01.

Further, Darden's Board of Directors declared a quarterly cash dividend of $1.31 per share, payable on May 1 to shareholders of record at the close of business on April 10.

In addition, the Board on Wednesday authorized a new share repurchase program of up to $1 billion.

For fiscal 2024, the company now expects adjusted net earnings per share from continuing operations of $8.80 to $8.90, excluding around $0.35, of Ruth's Chris transaction and integration related costs.

The company previously expected adjusted earnings per share from continuing operations of $8.75 to $8.90, excluding $0.37 costs.

Analysts on average expect the company to report earnings of $8.86 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Total sales oare now expected to be around $11.4 billion, down from previously estimated $11.5 billion. The Street is estimating sales of $11.51 billion for the year.

Same-restaurant sales growth is now expected to be 1.5 percent to 2.0 percent, compared to previously expected growth of 2.5 percent to 3.0 percent.

In its third quarter, Darden Restaurants reported that earnings increased from last year in line with the Street estimates.

The company's earnings totaled $312.9 million or $2.60 per share, compared to $286.6 million or $2.34 per share last year. Adjusted earnings were $315.4 million or $2.62 per share for the period.

Analysts expected the company to earn $2.62 per share.

The company's revenue for the quarter rose 6.5 percent to $2.97 billion from $2.79 billion last year.

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