Darden Restaurants, Inc Expects FY24 Sales of $11.5B Vs $11.57B Est, Adj EPS of $8.75-$8.90 Vs $8.81 Est
Portfolio Pulse from Benzinga Newsdesk
Darden Restaurants, Inc. (DRI) has updated its FY24 financial outlook, expecting total sales of approximately $11.5 billion, which is slightly below the estimated $11.57 billion. The company forecasts adjusted EPS of $8.75-$8.90, compared to the estimated $8.81. These projections include the operating results of Ruth's Chris but exclude about $55 million of pre-tax costs related to the acquisition. Other outlook details include same-restaurant sales growth of 2.5%-3.0%, 50-55 new restaurant openings, total capital spending of $600 million, total inflation of 3.0%-3.5%, an effective tax rate of 12%-12.5%, and approximately 121.0 million weighted average diluted shares outstanding.

December 15, 2023 | 12:07 pm
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Darden Restaurants expects FY24 sales of $11.5B, slightly below the $11.57B estimate, and adjusted EPS of $8.75-$8.90, around the $8.81 estimate, excluding costs from the Ruth's Chris acquisition.
The updated financial outlook for DRI is mixed, with sales slightly below estimates but adjusted EPS in line with expectations. The exclusion of acquisition costs may be viewed positively by investors, but the lower sales forecast could temper any potential stock price increase. The impact is likely neutral in the short term as the market digests both the positive and negative aspects of the outlook.
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