Darden Reports Q4 and Full Year Results, Projects More Growth for 2017

Darden Reports Q4 and Full Year Results, Projects More Growth for 2017

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ORLANDO, FL - It’s been an interesting year of movement for Darden, with Investor Group Starboard making moves and coming off strong projections over the last quarter. Now the company has reported a steady final few months for fiscal 2016, despite a decrease in total sales that it attributed to an extra week of operations.

Gene Lee, CEO, Darden Restaurants"I'm pleased with the results we achieved during the fourth quarter, which wrapped up a year of significant progress improving our operations and financial performance," said CEO Gene Lee, according to a press release. "These results reinforce our firm belief that our strategy is working as we continue to build guest loyalty by relentlessly focusing on our back-to-basics operating philosophy. This focus, together with our competitive advantages, drove our strong performance for the year and increased shareholder value."

Highlights for Darden’s Q4 2016 included:

  • Total sales from continuing operations decreased 4.7% to $1.79 billion; Increased 2.1% excluding the impact of the extra week
  • On a 13-week basis, reported diluted net earnings per share from continuing operations increased 19.6% to $1.10 and increased 8.9% from last year's adjusted diluted net earnings per share
  • Same-restaurant sales increased 1.7% on a fiscal calendar basis

The company also noted that it repurchased approximately $45 million of its outstanding common stock, and that this was based on a transition from a 53-week to a 52-week fiscal year, with the 13-weeks having ended May 29, 2016 versus last year’s 13-weeks ended May 24, 2015.

For 2017, Darden looks to grow with a projected 24 to 28 new restaurants opening, as well as an anticipated same-restaurant sales growth of 1.0% to 2.0%.

Darden Restaurants