Fri, Sep 27, 8:09 PM (84 days ago)
Darden Restaurants, Inc. reported a modest revenue increase of 1.0% to $2,757,000 in Q1 FY2025, driven by new restaurant openings despite a 1.1% decline in same-restaurant sales. Net earnings rose 6.5% to $207,200, with diluted earnings per share increasing to $1.74. Operating income improved by 6.4%, supported by a reduction in general and administrative expenses. Total costs and expenses slightly increased by 0.4%, with notable increases in restaurant labor (1.6%) and marketing expenses (15.8%). The effective tax rate decreased to 10.6%, benefiting from reserve releases. Cash flow from operations grew to $273,200, while investing activities were significantly lower at $149,700, largely due to last year's acquisition of Ruth's Chris. Financing activities showed a cash outflow of $126,700, influenced by share repurchases and dividends totaling $166,000. Looking forward, Darden plans to acquire Chuy’s Holdings for $605 million, funded through debt, and anticipates fiscal 2025 sales between $11.8 billion and $11.9 billion with continued restaurant expansion. The company maintains a strong liquidity position, with $955.6 million available under its revolving credit facility.