Darden Restaurants has reported double-digit increases in both sales and profit during the first fiscal quarter.
The company’s sales soared 10.4 per cent to $3 billion in the quarter ended August 24, driven by a 4.7 per cent growth in same-restaurant sales, 22 net new restaurants, and the acquisition of 103 Chuy’s Tex Mex restaurants.
By segment, same-restaurant sales rose 5.9 per cent at Olive Garden and 5.5 per cent at LongHorn Steakhouse, but fell 0.2 per cent at fine dining.
The company noted the results would not include Chuy’s until it has been owned and operated for 16 months.
On the bottom line, net earnings rose 24 per cent to $257.8 million.
“We had a strong start to the fiscal year with same-restaurant sales and earnings growth that exceeded our expectations,” said Darden president and CEO Rick Cardenas.
“Our winning strategy is enabling us to grow sales and market share, while making meaningful investments in our business and returning capital to our shareholders,” he added.
For the full year, the company expects sales growth of 7.5-8.5 per cent, including 2 per cent related to the 53rd week, and same-restaurant sales growth of 2.5-3.5 per cent. New restaurant openings are forecast to be approximately 65.