ORLANDO, FL - Darden Restaurants’ efforts to revamp its Olive Garden brand are paying off.
The company’s same-restaurant sales rose across the board for during Q1 2016, with a notable 2.7 increase for Olive Garden. This is the sixth consecutive quarter of increased sales for the company, which is currently operating under its largest shareholder Starboard Value.
Darden has made a number of changes to its menu at Olive Garden, which has helped attract more customers. Gene Lee, CEO, said in a press release that the company is continuing to build on its momentum from last year.
“We continue to make progress on our operating fundamentals of culinary innovation, attentive service, and engaging atmospheres while continuing to focus on disciplined cost management,” he said. “This progress is a direct result of our hard work and commitment to creating memorable guest experiences in our restaurants.”
Darden’s stock increased approximately 4 percent to $73.25 in pre-market trading. In after-hours trading, Darden stock decreased 0.73 percent to $69.70.
Total sales increased 5.7 percent to $1.69 billion. Net earnings were $86.4 million compared to the $503.2 million last year, which included the gain on the sale of discontinued operations, according to a press release. Same-restaurant sales increased 3.4 percent for the quarter.
Other highlights from Darden’s Q1 2016 include:
- Adjusted earnings per diluted share from continuing operations increased 112.5 percent to $0.68
- On a reported basis, earnings per diluted share from continuing operations were $.063 and were negatively impacted by approximately $0.05 related to the ongoing implementation of the company’s strategic real estate plan
Darden beat analyst expectations for its Q1 2016 report. CNBC reports that analysts expected Darden to deliver adjusted earnings per share of $0.58 on revenue of $1.68 billion, according to a Thomson Reuters consensus estimate.
How will the company continue to improve on its brand? Stay tuned to AndNowUKnow as we follow Darden’s financial reports in Q2 2016 and beyond.
