Darden Restaurants, Inc. announced its financial results for the fourth quarter and fiscal year ending May 26, 2024.
In the fourth quarter of 2024, Darden reported a 6.8% increase in total sales, amounting to $3.0 billion. This growth was driven by the addition of 80 company-owned Ruth’s Chris Steak House restaurants and 37 other new restaurants. Reported diluted net earnings per share from continuing operations were $2.58. Adjusted for $0.07 of Ruth’s Chris transaction and integration costs, adjusted diluted net earnings per share were $2.65, marking a 2.7% increase. Additionally, the company repurchased $97.3 million of its outstanding common stock during the quarter.
For the fiscal year 2024, total sales rose by 8.6% to $11.4 billion, supported by a 1.6% increase in blended same-restaurant sales and contributions from newly added restaurants, including Ruth’s Chris locations. Reported diluted net earnings per share from continuing operations were $8.53. Excluding $0.35 of Ruth’s Chris transaction and integration costs, adjusted diluted net earnings per share were $8.88, up 11.0% from the previous year.
“We had a strong year by maintaining our focus, executing fundamentals exceptionally well, and managing what was within our control,” said Rick Cardenas, President & CEO of Darden. “Despite encountering challenges in the latter part of the year, we exceeded the upper range of our EPS guidance set at the beginning of the fiscal year.”
Darden also declared a quarterly cash dividend of $1.40 per share on its outstanding common stock, reflecting a 6.9% increase from the previous quarter. The dividend is payable on August 1, 2024, to shareholders of record as of July 10, 2024.
Looking ahead to fiscal 2025, Darden anticipates total sales between $11.8 billion and $11.9 billion, with a 1.0% to 2.0% growth in same-restaurant sales. The company plans to open 45 to 50 new restaurants and expects total capital spending to range from $550 million to $600 million. Darden forecasts an effective tax rate of approximately 13% and projects diluted net earnings per share from continuing operations in the range of $9.40 to $9.60, based on approximately 119 million weighted average diluted shares outstanding.
Darden will hold its Annual Meeting of Shareholders on September 18, 2024, conducted in a virtual format. Shareholders as of July 24, 2024, will be eligible to vote at the meeting.
