Olive Garden parent Darden Restaurants stock falls after omicron drives earnings miss

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Olive Garden parent Darden Restaurants misses earnings expectations

Darden Restaurants Inc. DRI, -0.80% shares fell 1.7% in Thursday premarket trading after it reported fiscal third-quarter profit and sales that missed expectations. The Olive Garden parent posted net income of $247.0 million, or $1.93 per share, up from $128.7 million, or 98 cents per share. Sales totaled $2.449 billion, up from $1.733 billion last year. The FactSet consensus was for EPS of $2.10 and sales of $2.513 billion. Same-restaurant sales rose 38.1%, below the FactSet consensus for 43.

6% and the fine dining segment, which includes The Capital Grille and Eddie V's soared 85.8%. Darden had record sales in December, but omicron"significantly impacted" demand and operations in January, said Chief Executive Gene Lee in a statement. February bounced back with"strong sales," he said. For fiscal 2022, Darden is guiding for sales of $9.55 billion to $9.62 billion, same-restaurant sales growth of 29% to 30% and EPS of $7.30 to $7.45.

 

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