Darden Restaurants had a strong quarter and exceeded the market expectations with respect to the top and bottom lines. The company outperformed the industry norms for same-restaurant revenues and traffic. Olive Garden and LongHorn Steakhouse reached new all-time weekly sales over the holidays. Despite an 8% increase in hourly wages, restaurant labor was 120 basis points better than the previous year due to sales leverage. The overall increase in restaurant labor costs was 7%. Since Darden used h ....

19 Apr 2023
Darden Restaurants, Inc.: Digital Growth, New Restaurant Openings & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (04/23)

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Darden Restaurants, Inc.: Digital Growth, New Restaurant Openings & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (04/23)
- Published:
19 Apr 2023 -
Author:
Ishan Majumdar -
Pages:
27 -
Darden Restaurants had a strong quarter and exceeded the market expectations with respect to the top and bottom lines. The company outperformed the industry norms for same-restaurant revenues and traffic. Olive Garden and LongHorn Steakhouse reached new all-time weekly sales over the holidays. Despite an 8% increase in hourly wages, restaurant labor was 120 basis points better than the previous year due to sales leverage. The overall increase in restaurant labor costs was 7%. Since Darden used h ....