Darden Restaurants (DRI) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 sales grew 8.6% to $11.4B, with adjusted diluted EPS up 11% to $8.88, exceeding guidance and driven by same-restaurant sales growth, 53–80 new restaurants, and the acquisition and integration of Ruth's Chris Steak House, which contributed $0.10 EPS accretion and expected synergies.

• Q4 sales reached $3B, up 6.8% year-over-year, with adjusted diluted EPS of $2.65.

• Record guest satisfaction and strong team retention achieved, supported by engagement programs and operational excellence.

• Leadership changes and new roles for key executives and brand presidents implemented to support future growth and succession planning.

Financial highlights

• Same-restaurant sales grew 1.6% for fiscal 2024; Q4 same-restaurant sales were flat year-over-year.

• Restaurant-level EBITDA margin for the year was 19.9%, up 120 bps year-over-year.

• Adjusted EBITDA for the year was $1.8B, with Q4 adjusted EBITDA at $523M.

• Returned $1.1B to shareholders in FY24 via dividends and share repurchases.

• Operating income for fiscal 2024 was $1.36B (adjusted), with an effective tax rate of 12.6%.

Outlook and guidance

• Fiscal 2025 sales expected at $11.8B–$11.9B, with 1%–2% same-restaurant sales growth and 45–50 new restaurant openings.

• Diluted net EPS guidance: $9.40–$9.60; annual dividend increased 7% to $5.60 per share.

• Capital spending projected at $550M–$600M; inflation expected at ~3% (2% commodities, 4% labor).