Darden Restaurants Inc (NYSE:DRI) reported fourth-quarter FY23 sales growth of 6.4% year-on-year to $2.769 billion, marginally missing the analyst consensus of $2.77 billion.
The sales growth was driven by a blended same-restaurant sales increase of 4.0% and sales from 47 net new restaurants.
Darden clocked an operating margin of 13.5%, and the operating income rose 10.7% Y/Y to $374.5 million.
EPS of $2.58 beat the consensus of $2.54.
Darden generated an operating cash flow of $1.5 billion for twelve months. It held $416.2 million in cash and equivalents as of May 28, 2023.
Inventories at the end of Q4 were $287.9 million.
Darden’s Board of Directors declared a quarterly cash dividend of $1.31 per share on the common stock, an 8% increase from Q3, payable on August 1, 2023, to shareholders of record on July 10, 2023.
As of Q4-end, the company had approximately $652 million remaining under the current $1 billion repurchase authorization.
Guidance: Darden sees FY24 sales of $11.5 billion – $11.6 billion versus the Street view of $11.15 billion. DRI expects FY24 adjusted EPS from continuing operations of $8.55 – $8.85 against the consensus of $8.78.
It expects total inflation of 3% – 4% and new restaurant openings of about 50.
Price Action: DRI shares are trading lower by 3.85% at $160.00 in premarket on the last check Thursday.
