Darden (DRI) Q3 Earnings & Revenues Beat Estimates, Stock Up

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Darden Restaurants, Inc. (DRI Quick Quote DRI - Free Report) reported third-quarter fiscal 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The bottom line beat the consensus mark for the ninth straight quarter, while the top line outpaced the same after missing in the preceding three quarters. However, both the metrics declined on a year-over-year basis. Following the results, the company’s shares are up 5.2% in a pre-market trading session.

During the fiscal third quarter, the company reported adjusted earnings of 98 cents per share, beating the Zacks Consensus Estimate for earnings of 72 cents. In the prior-year quarter, the company had reported adjusted earnings per share of $1.90.

Total sales during the quarter amounted to $1,733 million, beating the consensus mark of $1,625 million. However, sales declined 26.1% from the prior-year quarter on account of negative blended same-restaurant sales of 26.7%. The decline was partially mitigated by the opening of 10 net new restaurants.

Darden Restaurants, Inc. Price, Consensus and EPS Surprise

Darden Restaurants, Inc. Price, Consensus and EPS Surprise

Darden Restaurants, Inc. price-consensus-eps-surprise-chart | Darden Restaurants, Inc. Quote

Sales 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.

Sales at Olive Garden decreased 25.4% year over year to $872 million. Comps slumped 25.8% at the segment compared with the prior quarter's comp decline of 19.9%.

Sales at Fine Dining plunged 44.6% to $104.4 million. Comps fell 45.2% at the segment, compared with a decline of 31% in second-quarter fiscal 2021.

Sales at Other Business decreased 36.8% year over year to $302.3 million. Moreover, comps Other Business fell 36.9%, compared with a decline of 28.6% in the prior quarter.

At LongHorn Steakhouse, sales were down 11% year over year to $454.3 million. Comps at the segment decreased 12.6%, compared with comps decline of 11.1% in the previous quarter.

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