Darden Restaurants Q1: Earnings Beat, Affirmed FY24 Outlook, New Board Chair & More

Darden Restaurants Inc DRI reported first-quarter FY24 sales growth of 11.6% year-on-year to $2.73 billion, beating the analyst consensus estimate of $2.71 billion.

The sales growth was driven by a blended same-restaurant sales increase of 5.0% and sales from the addition of 77 company-owned Ruth's Chris Steak House restaurants and 46 other net new restaurants.

Darden clocked an operating margin of 9.3%, and the operating income rose 3.6% Y/Y to $252.9 million.

Adjusted EPS of $1.78 beat the consensus estimate of $1.73.

Darden generated an operating cash flow of $269.1 million for the quarter. It held $240.5 million in cash and equivalents as of August 27, 2023.

Inventories at the end of Q1 were $287 million.

Darden's Board of Directors declared a quarterly cash dividend of $1.31 per share on the common stock, payable on November 1, 2023, to shareholders of record on October 10, 2023.

As of Q1-end, the company had approximately $509 million remaining under the current $1 billion repurchase authorization.

New Chair: On September 20, 2023, Darden's Board of Directors unanimously elected Cynthia (Cindie) T. Jamison as Chair of the Board, succeeding Eugene (Gene) I. Lee, Jr.

Guidance Reaffirmed: DRI expects FY24 adjusted EPS from continuing operations of $8.55 - $8.85 against the consensus of $8.74.

Price Action: DRI shares are trading lower by 0.20% at $149.02 on the last check Thursday.