Darden Restaurants, Inc. (DRI – Free Report) reported better-than-expected results in the first quarter of fiscal 2019. Adjusted earnings of $1.34 per share surpassed the Zacks Consensus Estimate of $1.23. The bottom line also increased 35.4% year over year on the back of higher revenues. Notably, the quarter marked the 16th consecutive earnings beat for the company. Results were aided by the company’s relentless efforts in improving the basic operating factors of the business — food, service and atmosphere.
Total revenues of $2,061.4 million exceeded the consensus mark of $2,028 million. Revenues also increased 6.5% from the prior-year quarter. The upside was driven by sales growth across most of the brands.
Following the quarterly results, shares of Darden increased 5% in pre-market trading. In a year’s time, the stock has gained 42%, outperforming its industry’s 6.1% growth.
Revenues by Segments
Darden reports business under four segments: Olive Garden, LongHorn Steakhouse, Fine Dining that includes The Capital Grille and Eddie V’s, and Other Business.
In the fiscal first quarter, the company’s legacy brands posted blended comps growth of 3.3%. In the last reported quarter, comps had increased 2.2%.
Sales at Olive Garden were up 6.3% year over year to $1,052 million. Comps grew 5.3% at the segment, higher than the prior-quarter’s comps growth of 2.4%. Traffic rose 1.5% along with 1.9% improvement in pricing and 1.9% growth in menu mix.
Sales at Fine Dining increased 6.3% to $129.9 million. Comps at The Capital Grille rose 3.9% compared with 2.8% reported in fourth-quarter fiscal 2018. Eddie V’s also posted comps growth of 3%, lower than 4.1% improvement recorded in the last reported quarter.
Revenues from Other Business jumped 7.1% year over year to $449.1 million. However, comps at Seasons 52 fell 1.9% in the quarter compared with fourth-quarter fiscal 2018 comps decline of 0.6%. Comps at Yard House inched up 0.6% compared with 1.1% increase in the last reported quarter. Meanwhile, comps grew 1.1% at Bahama Breeze, flat quarter over quarter.
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