Darden Restaurants Inc (DRI) Q4 2024 Earnings Report

- Darden reported a strong finish to fiscal 2024 with Q4 revenue of $2.958 billion and net income of $308.1 million, or $2.58 per share (GAAP). Adjusted diluted EPS from continuing operations rose 2.7% to $2.65 for the fourth quarter, and adjusted EBITDA was $523 million, underscoring the company’s cost discipline as inflation moderated.
- For the full year, Darden delivered total sales of about $11.4 billion and an adjusted EPS of $8.88, with a total shareholder return of 14.2% for fiscal 2024, placing TSR near the high end of its long-term target range (10-15%). Ruth’s Chris integration was completed within the year, contributing to synergies and a mid-single-digit per-share accretion during the period.
- Management highlighted disciplined execution across the portfolio, including strong labor productivity, advantageous commodity dynamics, and selective pricing, all while maintaining a “profitable sales growth” framework. Looking ahead, Darden provided FY2025 guidance: total sales of $11.8–$11.9 billion, 1–2% same-restaurant sales growth, 45–50 net new restaurants, capex of $550–$600 million, ~3% inflation, an effective tax rate around 13%, ~119 million diluted shares, and EPS of $9.40–$9.60. The board also approved a 7% dividend increase to $1.40 per quarter.
- The driver thesis remains that Darden’s portfolio (notably Olive Garden and LongHorn) can sustain growth through mix management, menu/value innovations, and disciplined capital allocation, supported by a strengthened leadership slate to scale the Specialty Restaurant Group and Ruth’s Chris franchise opportunities.