Darden Restaurants Earnings, Revenue Higher Than Wall Street’s Estimates
ORLANDO — Darden Restaurants reported quarterly earnings and revenue on Thursday that were higher than the Wall Street analysts’ predictions, though they remain down year-over-year. The company’s net income was $128.7 million for its fiscal third quarter that ended Feb. 28, 2021. According to the CNBC, analysts surveyed by Refinitiv had predicted earnings of 69 cents per share, versus the 98 cents that the company received.
Net sales decreased by 26.1 percent to $1.73 billion year-over-year, but this number was larger than the expected value of $1.63 billion.
Olive Garden accounts for half of Darden’s revenue, and the Italian restaurant saw a same-store sales decline of 25.8 percent. However, LongHorn Steakhouse had a same-store decline of only 12.6 percent. The Darden restaurant chain that was hit the hardest was The Capital Grille, which had same-store sales decline of 45.2 percent.
Darden Restaurants is hopeful for the fiscal fourth quarter of the year, as the company is predicting total sales of $2.1 billion and earnings per share up to $1.70. In fiscal 2022, the company predicts to open about 35 restaurants.
The company also wants hike wages for its hourly restaurant workers by spending around $17 million in a one-time bonus. Darden has already started hourly worker wages at all restaurants to at least $10 an hour and hopes to eventually bring it up to $12 an hour. This company decision follows the legislation leaders deciding to drop President Joe Biden’s proposal to raise federal minimum wage to $15 an hour, according to CNBC.