01—Abstract
Summary
Summary of the 10-K filed July 19, 2024. Cited figures are marked; the original filing is the authoritative source.
Darden Restaurants, Inc. (DRI) reported solid performance for fiscal year 2024, with total sales reaching $11.39 billiona, an increase of 8.6% from the prior year.
This growth was driven by a blended same-restaurant sales increase of 1.6% and the integration of 80 net new Ruth's Chris restaurants along with 37 other new company-owned locations. Diluted earnings per share from continuing operations saw a healthy increase of 6.6% to $8.53b. The company continues to execute its growth strategy, marked by the acquisition of Ruth's Chris Steak House in June 2023 and the recent announcement of the agreement to acquire Chuy's Holdings, Inc. in July 2024.
Darden has a robust outlook for fiscal year 2025, projecting sales growth of 3.5%c to 4.5%, supported by planned openings of 45-50 new restaurants. The company also highlighted its commitment to operational excellence, talent management, and brand strength across its diverse portfolio of restaurants.
02—Key points
Key Highlights
- Total sales for fiscal year 2024 increased by 8.6% to $11.39 billion, reflecting strong performance across its restaurant brands.
- The company achieved a blended same-restaurant sales increase of 1.6%, indicating steady consumer demand.
- Diluted earnings per share from continuing operations grew by 6.6% to $8.53, demonstrating improved profitability.
- Darden successfully integrated the Ruth's Chris Steak House acquisition, adding 80 net new restaurants and contributing to segment growth.
- A new $1 billion share repurchase program was authorized, signaling confidence and a commitment to returning capital to shareholders.
- The company announced its intent to acquire Chuy's Holdings, Inc. for approximately $605 million, expanding its brand portfolio into the Tex-Mex casual dining segment.
- Darden projects fiscal year 2025 sales growth of 3.5% to 4.5%, with plans to open 45-50 new restaurants.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Darden Restaurants Inc kept $0.09.
- Revenue$11.39B100.0%
- Cost of revenue−$9.10B79.9%
- Gross profit$2.29B20.1%
- Operating costs−$975.8M8.6%
- Operating income$1.31B11.5%
- Interest, other & tax−$286.6M2.5%
- Net income$1.03B9.0%
Where FY2024 revenue went
$11.39B- Cost of revenue: $9.10B, 80% of revenue
- Net income: $1.03B, 9.0% of revenue
- Operating costs: $975.8M, 8.6% of revenue
- Interest, other & tax: $286.6M, 2.5% of revenue
Kept 9.0% as net incomeNet income $1.03B · 9.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed July 19, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $11.39B$10.49B | +8.6% |
| Gross Profit | $2.29B$1.99B | +15.0% |
| Operating Expenses | $10.08B$9.29B | +8.5% |
| Operating Income | $1.31B$1.20B | +9.4% |
| Net Income | $1.03B$981.90M | +4.7% |
| EPS (Basic) | $8.57$8.06 | +6.3% |
| EPS (Diluted) | $8.51$7.99 | +6.5% |
| Shares Outstanding (Basic) | 119.90M121.90M | −1.6% |
| Shares Outstanding (Diluted) | 120.80M122.90M | −1.7% |
05—Questions
Frequently Asked Questions
What was Darden's overall financial performance in fiscal year 2024?
In fiscal year 2024, Darden Restaurants, Inc. reported total sales of $11.39 billion, an increase of 8.6% from fiscal year 2023. Diluted earnings per share from continuing operations rose by 6.6% to $8.53, demonstrating profitable growth.
What are the key growth drivers for Darden?
Darden's growth is driven by a combination of factors including same-restaurant sales increases, the addition of new company-owned restaurants, and strategic acquisitions. The successful integration of Ruth's Chris Steak House and the planned acquisition of Chuy's Holdings are key examples of their brand expansion strategy.
How is Darden managing costs and operational efficiency?
The company focuses on operational excellence, leveraging its scale for purchasing power, and implementing productivity improvements. While facing inflationary pressures, Darden aims to offset these through pricing and efficiency measures. Their detailed operational manuals and management oversight contribute to maintaining standards across their diverse brands.
What is Darden's outlook for fiscal year 2025?
Darden anticipates fiscal year 2025 sales to increase between 3.5% and 4.5%, driven by a projected same-restaurant sales growth of 1.0% to 2.0% and the opening of 45 to 50 new restaurants. Capital expenditures are expected to be between $550 million and $600 million.
06—Continue