$DRI (-2,17 %) Darden Restaurants delivered solid results in Q2 FY25, with a 6.0% revenue increase driven by same-restaurant sales growth and the Chuy's acquisition. The company focused on operational efficiency and shareholder returns, repurchasing $142M in stock.
📊 Income Statement Highlights (vs Q2 FY24):
▫️Net Income: $215.7M vs $212.3M (+1.60%)
▫️Total Revenue: $2.89B vs $2.73B (+6.00%)
▫️Adjusted EPS: $2.03 vs $1.84 (+10.33%)
▫️Segment Revenue:
- Olive Garden: $1.29B (+3.28%)
- LongHorn Steakhouse: $710.1M (+10.43%)
- Fine Dining: $306.0M (-3.77%)
- Other Business: $581.4M (+12.92%)
▫️Gross Margin: $292.1M vs $278.5M (+4.89%)
▫️Operating Income: $561.3M YTD vs $531.4M YTD (+5.63%)
▫️Marketing Spend: $48.8M (+32.22%)
▫️Repurchases: 0.9M shares for $142M.
💼 Balance Sheet Highlights (vs May 2024):
▫️Total Assets: $12.52B vs $11.32B (+10.55%)
▫️Cash and Cash Equivalents: $217.3M (+11.55%)
▫️Goodwill: $1.65B (+18.91%, driven by acquisitions).
▫️Short-Term Debt: $275.2M vs $86.8M (+217.19%).
▫️Total Liabilities: $10.45B vs $9.08B (+15.08%)
🔮 Future Outlook:
▫️Revenue forecast: $12.1B for FY25.
▫️Same-restaurant sales growth target: ~1.5%.
▫️CapEx: $650M.
▫️EPS projection: $9.40–$9.60 (adjusted).
Additional Notes:
Dividend declared: $1.40/share, payable Feb 3, 2025.
New restaurant openings forecast: 50–55.
