NYSE$DRI

Darden Restaurants Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Darden's first quarter of fiscal year 2022 showcased significant sales growth and profitability.

Darden Restaurants reported a strong first quarter for fiscal year 2022, with total sales increasing by 51% to $2.31 billion, driven by a blended same-restaurant sales increase of 47.5% and the addition of 34 net new restaurants. The company's reported diluted net earnings per share from continuing operations was $1.76, and net earnings from continuing operations were $232 million.

  • Total sales increased 51% year-over-year to $2.31 billion.
  • Blended same-restaurant sales increased 47.5%.
  • Reported diluted net earnings per share from continuing operations was $1.76.
  • The company repurchased approximately $186 million of its outstanding common stock.

Headline financials

Total Revenue

$2.31B

Previous: $1.53B+51.0%
EPS (adj)

$1.76

Previous: $0.56+214.3%
LongHorn same-restaurant sales

47.0%

Previous: -18.1%+359.7%
Fine Dining same-restaurant sales

84.6%

Previous: -39.1%+316.4%
Other Business same-restaurant sales

65.8%

Previous: -39.0%+268.7%
Olive Garden same-restaurant sales

37.1%

Previous: -28.2%+231.6%
Capital Expenditures

-$82.7M

Previous: -$42.2M-96.0%
Free Cash Flow

$148M

Previous: -$6.1M+2529.5%
Net Income

$231M

Previous: $36.1M+539.6%
Operating Income

$281M

Previous: $56.6M+396.1%
Gross Profit

$483M

Previous: $273M+77.1%
Cash & Equivalents

$948M

Previous: $655M+44.8%
Total Assets

$10.5B

Previous: $9.79B+7.7%
Stock-Based Comp

$27.6M

Previous: $19.1M+44.5%

Revenue & EPS history

Darden · Revenue · Quarterly

$2.31B

Q1 2022+51%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Darden · $2.31B total across 4 segments · Q1 2022

  • Olive Garden
    $1.09B+38.3%
  • LongHorn Steakhouse
    $567M+50.5%
  • Other Business
    $480M+71.8%
  • Fine Dining
    $169M+103.1%

Forward guidance

The Company increased its financial outlook for fiscal 2022 based on year-to-date results and its expected performance for the remainder of the year, assuming no significant business interruptions related to COVID-19.

Tailwinds

  • Total sales of approximately $9.4 to $9.6 billion
  • Total sales growth vs. Pre-COVID of 7% to 9%
  • Same-restaurant sales vs. fiscal 2021 of 27% to 30%
  • Approximately 35 to 40 new restaurant openings
  • EBITDA between $1.54 to $1.60 billion

Headwinds

  • Total capital spending of $375 to $425 million
  • Total inflation of approximately 4%
  • Effective tax rate of 13% to 14%
  • Diluted net earnings per share from continuing operations of $7.25 to $7.60
  • Approximately 131 million weighted average diluted shares outstanding

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.2%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+3.7%

Avg return

30 days after

59%

41 / 70 earnings

Positive

+17.3%

Q2 2025

Best reaction

-9.7%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026+3.8%-4.2%
Q2 2026+2.8%-1.3%+13.2%
Q1 2026-7.8%-10.7%-9.9%
Q4 2025-0.8%-3.7%-7.2%
Q3 2025+5.8%+10.1%+6.4%
Q2 2025+17.3%+16.8%+13.7%
Q1 2025+6.9%+7.5%+3.4%
Q4 2024+0.9%+0.7%-6.0%
Q3 2024-5.4%-6.3%-12.6%
Q2 2024+2.5%-0.6%-3.7%
Q1 2024-4.0%-5.4%-5.9%
Q4 2023-3.1%-1.8%+2.4%
Q3 2023+1.0%+2.3%+0.5%
Q2 2023-3.1%-3.0%+4.9%
Q1 2023-6.8%-5.9%+1.6%
Q4 2022+4.1%-0.0%+5.4%
Q3 2022-0.9%+2.6%+2.4%
Q2 2022-6.2%-1.4%-2.8%
Q1 2022+5.6%+3.7%-3.3%
Q4 2021+6.4%+6.2%+6.7%
Q3 2021+11.2%+8.3%+7.5%
Q2 2021-1.4%+0.8%+2.1%
Q1 2021+8.0%+12.0%+10.6%
Q4 2020+3.0%+7.0%+11.1%
Q3 2020+14.2%+57.8%+85.5%
Q2 2020-5.2%-6.7%-2.4%
Q1 2020-5.8%-7.3%-13.1%
Q4 2019+3.3%+4.9%+6.0%
Q3 2019+8.1%+9.6%+7.6%
Q2 2019+1.8%+0.3%+9.2%
Q1 2019-4.2%-4.1%-9.8%
Q4 2018+16.7%+15.6%+18.4%
Q3 2018-9.7%-9.7%-2.4%
Q2 2018+5.7%+6.5%+7.5%
Q1 2018-4.8%-5.2%-0.4%
Q4 2017+1.6%+0.4%-6.2%
Q3 2017+7.7%+9.1%+12.2%
Q2 2017+0.1%-1.6%-4.1%
Q1 2017+0.3%+0.4%+4.0%
Q4 2016-4.5%-6.8%-6.7%
Q3 2016-3.5%
Q2 2016+9.1%
Q1 2016+1.2%
Q4 2015+2.1%
Q3 2015+6.7%
Q2 2015-0.2%
Q1 2015+3.4%
Q4 2014-3.5%
Q3 2014+2.8%
Q2 2014-3.5%
Q1 2014-0.2%
Q4 2013-4.3%
Q3 2013+2.9%
Q2 2013-3.6%
Q1 2013+3.5%
Q4 2012-1.7%
Q3 2012+0.2%
Q2 2012-1.4%
Q1 2012-7.4%
Q4 2011-0.8%
Q3 2011-0.4%
Q2 2011-0.6%
Q1 2011+1.5%
Q1 2010+1.5%
Q4 2008+2.1%
Q2 2010+2.1%
Q4 2010+2.1%
Q3 2010+2.3%
Q3 2009+2.3%
Q4 2009+2.3%

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