Darden Restaurants Reports Q3 Earnings Miss

Darden Restaurants Reports Q3 Earnings Miss

Darden Restaurants (NYSE: DRI) reported disappointing third-quarter earnings Thursday amid a fall in sales for its Olive Garden branch, due to the omicron variant. Consequently, the company cut its earnings forecast for fiscal 2022, anticipating that both food and labor costs would continue to rise.

The American multi-brand restaurant operator, headquartered in Orlando, reported earnings of USD1.93 per share, compared to the expected USD2.10 a share. Revenue amounted to USD2.45 Billion, lower than analysts anticipated USD2.51 Billion. Furthermore, its net income for the quarter totaled USD247 million, a hefty increase from the previous year’s USD128.7 million.

“This was a quarter of stark contrasts and I’m pleased with our performance in this highly volatile environment,” said Chairman and CEO Gene Lee. “It began with record sales in December. However, the Omicron variant significantly impacted guest demand, restaurant staffing, and operating expenses in January. I am proud of the job our restaurant teams did managing through a difficult operating environment. They remained focused on executing at the highest level and delivered strong sales in February as the environment improved.”

“Darden is well-positioned to compete effectively,” Lee continued. “We have a strong balance sheet and the right strategy in place, driven by our four competitive advantages of significant scale, extensive data and insights, rigorous strategic planning, and our results-oriented culture. And, our brands are relentlessly focused on executing our back-to-basics operating philosophy anchored in food, service, and atmosphere.”

Darden Restaurant shares have fallen 13.1% throughout the year and have a current market cap of USD16.84 Billion.

Opt-into our eNewsletter NOW! For the Latest Trending Financial News Topics in Cannabis, Tech, Biotechs, Precious Metals, Energy, Renewable Energy and much more!