ORLANDO, FL – Shares in Darden Restaurants jumped 7% this morning after reports of the company’s second quarter financial performance showed considerable improvement. This is the seventh consecutive quarter of same-store sales growth, signifying that its efforts to revamp the Olive Garden brand are paying off.
“We saw continued momentum this quarter, with all our brands once again posting positive same-restaurant sales growth and delivering meaningful margin improvement,” CEO Gene Lee said in a press release. “These results reflect our continuous focus on operating great restaurants and leveraging our competitive advantages to drive sales and profitability.”
During a conference call with investors, Lee said that the increased sales at Olive Garden was a direct result of its improved restaurant experience and enhanced menu options.
Olive Garden’s sales rose 1.0% at established locations for the second quarter, ended November 29, 2015, when compared to the same period last year. Profit also increased nearly 12% for the chain, jumping to $157.1 million compared to $140.5 million last year.
Darden’s total sales from continuing operations increased 3.2% to $1.61 billion.
Other highlights from the quarter include:
- Adjusted diluted net earnings per share from continuing operations increased 92.9% to $0.54
- On a reported basis, diluted net earnings per share from continuing operations were $0.23 and were negatively impacted by approximately $0.31, primarily related to the implementation of the company’s strategic real estate plan
- Same-restaurant sales increased 1.6% for the fiscal quarter, including 1.0% for Olive Garden, 1.5% for The Capital Grille, 1.7% for Yard House, 2.6% for LongHorn Steakhouse, 1.1% for Eddie V’s, 4.5% for Seasons 52, and 2.4% for Bahama Breeze
- On a comparable calendar basis, same-restaurants sales increased 2.9% for the quarter, including 2.8% for Olive Garden, 0.9% for The Capital Grille, 2.4% for Yard House, 3.6% for LongHorn Steakhouse, 3.2% for Eddie V’s, 3.8% for Seasons 52, and 5.8% for Bahama Breeze
Darden has subsequently increased its outlook for fiscal 2016 same-restaurant sales to 2.5% to 3.0% and adjusted diluted net earnings per share to $3.25 to $3.35.
“We accomplished a great deal in the quarter to further strengthen our company and deliver value for shareholders,” Lee said. “Our strong operating performance gives us the confidence to increase our outlook for the year, even with the increased costs associated with our comprehensive real estate strategy.”
Stay tuned to AndNowUKnow as we continue to follow Darden’s financial performance in Q3 2016 and beyond.
