Darden Restaurants (DRI) Q3 2022 results

An Olive Garden restaurant in Times Square in New York.

Richard Levin | Corby | Getty Images

Darden Restaurants on Thursday released quarterly earnings and revenue that beat analysts’ expectations.

The company, owner of the Olive Garden chain, also lowered its profit outlook for the 2022 financial year.

Darden shares fell more than 3% in premarket trading.

Here’s what the company reported compared to what Wall Street expected, based on a Refinitiv analyst survey:

  • Earnings per share: $1.93 vs. $2.10 expected
  • Revenue: $2.45 billion vs. $2.51 billion expected

The restaurant company reported third-quarter net income of $247 million, or $1.93 per share, compared with $128.7 million, or 98 cents per share, a year earlier. Analysts polled by Refinitiv had expected earnings per share of $2.10.

Net sales rose 41.3% to $2.45 billion, below expectations of $2.51 billion. Across all of Darden’s restaurant chains, same-store sales increased 38.1%. Wall Street expected total same-store sales growth of 43.5%, according to StreetAccount estimates. A year ago, Darden’s same-store sales were down 26.7%.

After raising its earnings forecast last quarter, Darden lowered them on Thursday. The company now expects earnings per share from continuing operations for fiscal 2022 of $7.30 to $7.45, down from its earlier outlook of $7.35 to $7.60.

The company also cut its fiscal 2022 revenue outlook. Its sales forecast is now $9.55-9.62 billion, down from $9.55-9.7 billion previously.

Read the full earnings report here.

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