Darden reported third-quarter revenue of $3.2 billion, up 5.1% year on year and in line with analyst estimates of $3.21 billion, while GAAP earnings of $2.04 per share came in 1.3% below the $2.07 consensus. The company guided to full-year GAAP EPS of $11.23 at the midpoint, roughly in line with expectations, as operating margin fell to 10% from 11.1% a year earlier. Same-store sales rose 3.1% year on year, down from 4.7% in the prior-year quarter, with CEO Ricardo Cardenas saying same-restaurant guest counts were hit by 150 to 200 basis points from the World Cup and heightened consumer concerns about lettuce, particularly at Olive Garden. Yard House posted 10% same-restaurant sales growth and reached $1 billion in trailing 52-week sales for the first time, while Darden ended the quarter with 2,218 locations, up from 2,165 a year earlier. CFO Rajesh Vennam said pricing was 3.7% for the quarter and is expected to moderate through the year as the company expands Yard House with a new prototype and tests new lunch platforms.
Darden Restaurants IncQ3 GAAP EPS of $2.04 missed the $2.07 consensus and operating margin fell to 10% from 11.1% a year earlier.
