This Type Of Restaurant Is Thriving Right Now, Yet Olive Garden Struggles: Here's Why

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With food inflation still surging, up 8% for the twelve months ended August, and the Russia-Ukraine war adding to global food constraints, it's easy to see why restaurant brands and operators are experiencing diminishing margins on their bottom line.

Take Darden Restaurants (NYSE: DRI), the largest restaurant operator in the U.S. The Orlando, Florida-based company reported Thursday its first quarter 2023 results and its fiscal 2023 financial outlook.

Stephens & Co. analyst Joshua Long initiated an Overweight rating and a price target of $140 for 2023 for the company, which owns Olive Garden, Texas LongHorn Steakhouse and The Capital Grille.

What Happened: According to the company's statements:

  • First-quarter sales increased by 6.1%, or $2.4 billion, from the previous year's quarter
  • Profits declined in all four of its branded segments.
  • The diluted net earnings per share for the first quarter was $1.56, down 12.8%, from …

Full story available on Benzinga.com

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