Olive Garden parent earnings beat estimates, fueled by strong LongHorn Steakhouse sales

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Darden's Olive Garden had a weaker-than-expected quarter, but LongHorn Steakhouse reported strong same-store sales growth.

quarterly earnings that topped Wall Street's expectations, fueled by strong LongHorn Steakhouse sales.Darden is anticipating adjusted earnings per share from continuing operations of $8.55 to $8.85, but analysts surveyed by Refinitiv were expecting earnings of $8.79 per share for the fiscal year.

But Olive Garden, which accounts for roughly 45% of Darden's sales, reported a weaker-than-expected performance for the quarter. The Italian chain's same-store sales rose 4.4%, falling short of expectations for 5% growth. "We expect traffic to stabilize on a year-over-year basis after the first quarter," CFO Raj Vennam told investors on the company's conference call.

Its earnings outlook excludes about 34 cents per share, after tax, of expenses related to the Ruth's Chris integration. The rest of its fiscal 2024 forecast includes Ruth's Chris's operating results.

 

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