Olive Garden owners' shares jump after strong earnings report

By Laura Mullan
Darden Restaurants shares surged 10% on Thursday after the restaurant group posted better-than-expected fourth-quarter earnings. Profits hit $172.5mn i...

Darden Restaurants shares surged 10% on Thursday after the restaurant group posted better-than-expected fourth-quarter earnings.

Profits hit $172.5mn in the quarter ending May 27, compared to $123.8mn during the same period last year.

The owner of restaurant brands such as Olive Garden and Red Lobster said that the strong results were thanks to its ‘back-to-basics operating philosophy’ and increased sales. 

“Our solid fourth quarter results concluded another strong year of performance as we executed our back-to-basics operating philosophy and strengthened our competitive advantages," said CEO Gene Lee. 

SEE ALSO:

 "Our strategy remains unchanged, and our operators' consistent focus on being brilliant with the basics has allowed us to continue building guest loyalty while taking market share,” he added. 

The restaurant group also raised its dividend 19% to $0.75 per common share. 

"Our strong operating model generates substantial cash flows, which enables us to invest in our businesses and continue our history of returning significant cash to our shareholders," Chief Financial Officer Rick Cardenas said in a statement. 

"In fiscal 2018 we returned $550 million to shareholders in the form of dividends and share repurchases, and more than $1.5 billion over the past three years."

Following the results, Darden says it is planning to open 45 to 50 new restaurant locations across its eight branded restaurants

The firm also expects same-store sales at all its branded restaurants to grow by up to 2% in 2019.
 

Share

Featured Articles

Top 10 customer experience (CX) trends in 2023

Food Digital breaks down the Top 10 customer experience (CX) trends taking centre stage for 2023, including predictive analytics, AR, metaverse and more

Absolut joins the sustainable drink trend with paper bottle

Sustainability is driving brand changes at Absolut as the drinks brand focuses on delivering new designs and a sustainable paper-based recyclable packaging

Careers Passport: flagship programme to help jobseekers

A fast-track job scheme designed to remove barriers to enter the food and drink industry has seen over 1,000 training opportunities created.

Coca-Cola, Diginex & Reckitt tech to support supply chains

Drink

Luxury food manufacturer Venchi on sustainable packaging

Food

How has the pandemic affected sales at General Mills?

Food