Olive Garden Parent's Earnings Miss Estimates, Company Lowers Fiscal 2022 Outlook

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Darden Restaurants, which owns Olive Garden, reported quarterly earnings and revenue that missed analysts’ expectations.

Net sales rose 41.3% to $2.45 billion, falling short of expectations of $2.51 billion. Across all of Darden's restaurant chains, same-store sales climbed 38.1%. Wall Street was expecting total same-store sales growth of 43.5%, according to StreetAccount estimates. A year ago, Darden's same-store sales shrank by 26.7%.

Olive Garden, which accounts for roughly half of Darden's revenue, reported same-store sales growth of 29.9%, missing StreetAccount estimates of 36.7%. LongHorn SteakHouse saw its same-store sales rise 31.6% in the quarter. The chain's sales bounced back faster than Olive Garden after building a strong takeout business earlier in the pandemic, but it only accounts for about a quarter of Darden's revenue.

 

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