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Darden Restaurants Inc (DRI) reported first-quarter FY22 sales growth of 51.3% year-on-year, to $2.31 billion, beating the analyst consensus of $2.24 billion.

Blended same-restaurant sales increased 47.5%, with Olive Garden same-restaurant sales rising 37.1%.

Operating costs and expenses increased 37.7% Y/Y. The operating margin was 12.2%, and operating income for the quarter increased nearly five-fold to $280.8 million.

The company reported an EBITDA of $370 million for the quarter. EPS of $1.76 beat the analyst consensus of $1.65.

Darden's Board has declared a quarterly cash dividend of $1.10 per common share, payable on November 1, to shareholders of record on October 8, 2021.

The company's Board has approved the repurchase of an additional $750 million of common stock.

Darden Restaurants held $947.8 million in cash and equivalents as of August 29, 2021.

Outlook: Darden Restaurants sees FY22 sales of $9.4 billion - $9.6 billion (prior view $9.2 billion - $9.5 billion) versus the consensus of $9.41 billion.

It sees EPS from continuing operations of $7.25 - $7.60 (prior $7.00 - $7.50) versus the consensus of $7.43.

Price action: DRI shares are trading higher by 4.58% at $157.21 in premarket on the last check Thursday.