Summary
Darden Restaurants, Inc. reported a solid performance for the first quarter of fiscal year 2017, with total sales increasing by 1.6% to $1.71 billion compared to the prior year's quarter. This growth was driven by a 1.3% increase in same-restaurant sales across its brands and the addition of new company-owned restaurants. Net earnings from continuing operations saw a significant jump of 37.2% to $111.1 million, translating to diluted EPS of $0.88, up from $0.63 in the prior year's comparable period. The company demonstrated effective cost management, with food and beverage costs decreasing as a percentage of sales due to deflationary pressures and cost-saving initiatives. While restaurant expenses increased slightly as a percentage of sales due to real estate transactions, overall operating costs remained stable. Darden also continued its commitment to shareholder returns, with significant share repurchases and dividend payments. The company provided a positive outlook for fiscal year 2017, expecting same-restaurant sales growth between 1.0% and 2.0% and continued new restaurant development.
Financial Highlights
47 data points| Revenue | $1.71B |
| Gross Profit | $308.00M |
| Operating Expenses | $1.55B |
| Operating Income | $161.30M |
| Net Income | $110.20M |
| EPS (Basic) | $0.88 |
| EPS (Diluted) | $0.87 |
| Shares Outstanding (Basic) | 124.90M |
| Shares Outstanding (Diluted) | 126.70M |
Key Highlights
- 1Sales increased by 1.6% to $1.71 billion in Q1 FY2017.
- 2Net earnings from continuing operations grew by 37.2% to $111.1 million.
- 3Diluted EPS from continuing operations increased to $0.88 from $0.63 year-over-year.
- 4Same-restaurant sales increased by 1.3% overall, with Olive Garden showing a 2.0% increase.
- 5Food and beverage costs decreased as a percentage of sales due to favorable menu mix, deflation, and cost savings.
- 6The company repurchased $195.6 million of common stock in the quarter.
- 7Darden expects fiscal 2017 same-restaurant sales to increase between 1.0% and 2.0%.