Darden Restaurants (NYSE:DRI) raised its estimates for fiscal year 2018 after reporting quarterly earnings and sales that beat analysts’ expectations.
The owner of Olive Garden, LongHorn Steakhouse and Yard House restaurants, posted a 3.1% increase in same-store sales of its legacy brands in the second quarter to 26 November. Analysts expected a 1.4% rise in same-store sales.
"Our strong same-restaurant sales and new restaurant growth drove continued market share gains during the quarter," said Gene Lee, chief executive of Darden. "That performance, in addition to our solid earnings growth, is a result of executing on our strategy."
Earnings grew to US$84.7mln, or 67 cents per shares, from US$79.5mln, or 64 cents per share, a year ago.
Excluding one-off costs and the impact of discontinued operations, Darden earned 73 cents a share, three cents higher than analysts had forecast.
Darden lifted its full year earnings guidance to a range of US$4.45 to US$4.53 per share from a previously estimated range of US$4.38 to US$4.50 per share.
Same-store sales growth for the year is now expected to be about 2% - the high end of its previous forecast of between 1% and 2%.
Shares rose 2.78% to US$93.06 in early US trading.