Despite matching profit expectations for the first quarter, and reaffirming the financial outlook for the full fiscal year, Darden Restaurants Inc (NYSE:DRI) shares dipped in premarket trade after its same store sales missed expectations.
The parent of Olive Garden and LongHorn Steakhouse restaurant chains, said in a statement that net income for the quarter to Aug. 27 rose to US$119.0mln, or 93 US cents a share, from US$110.2mln, or 87 US cents a share, the same period a year ago.
READ: Darden Restaurants investors cheering in pre-market after earnings beat
Excluding non-recurring items, adjusted earnings per share came to 99 US cents, meeting Wall Street’s expectations.
Revenue during the quarter rose to US$1.94bn from US$1.71bn, coming in slightly above market consensus of US$1.93bn.
Same-store sales however disappointed, rising by only 1.7% and missing market expectations for a 2.19% growth.
At Olive Garden, same-store sales rose 1.9%, also below market expectations for a 2.5% growth while LongHorn turned the tables and saw same-store sales rise 2.6% against market hopes for a 2.2% rise.
The restaurateur kept its 2018 outlook for adjusted EPS of US$4.38 to US$4.50 and maintained its revenue growth of 11.5% to 13%.
Its shares fell 4.4% at US$79.48 in premarket trade.