WASHINGTON (dpa-AFX) - Restaurant company Darden Restaurants, Inc. (DRI) reported Thursday that net profit for the first quarter declined from last year, hurt by higher expenses, despite sales growth across all segments. The company also reaffirmed its adjusted earnings and net sales guidance for the full-year 2027.
In pre-market activity on the NYSE, Darden shares are tumbling $10.29 or 4.81 percent to trade at $203.50.
'The performance across our portfolio reinforces the importance of having distinctive brands, each with a clear strategy, supported by Darden's scale and other competitive advantages,' said President & CEO Rick Cardenas.
For the first quarter, net earnings were $233.4 million or $2.04 per share, higher than $257.8 million or $2.19 per share in the prior-year quarter. Earnings from continuing operations for the latest quarter were $2.05 per share.
Excluding items, adjusted earnings from continuing operation for the quarter were $2.05 per share, compared to $1.97 per share in the year-ago quarter.
Total sales for the quarter grew 5.1 percent to $3.20 billion from $3.04 billion in the same quarter last year, driven by growth across all its operating segments.
Blended same-restaurant sales for the quarter increased 3.1 percent on a fiscal calendar basis and increased 3.2 percent on a comparable calendar basis.
Sales at Olive Garden segment increased to $1.33 billion from $1.30 million, with same-restaurant sales growth of 1.1 percent. LongHorn Steakhouse segment sales grew to $860.9 million from $776.4 million, with same-restaurant sales growth of 6.2 percent.
Sales at Fine Dining segment increased to $304.2 million from $286.5 million last year, with same-restaurant sales growth of 1.6 percent.
Darden's Board of Directors declared a quarterly cash dividend of $1.62 per share on the Company's outstanding common stock, payable on November 2, 2026 to shareholders of record at the close of business on October 9, 2026.
'Looking ahead, our focus remains the same: operate our restaurants at a high level, strengthen guest loyalty, invest in our people and brands, and deploy capital in ways that support long-term shareholder value,' added Cardenas.
For fiscal 2027, the company continues to project net earnings from continuing operations in the range of $11.10 to $11.35 per share on total sales between around $13.60 billion and $13.75 billion.
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