Darden Foresees Strong Q3 2016; Appoints Ricardo Cardenas as CFO
ORLANDO, FL – Shares in Darden Restaurants were on the rise in mid-day trading after the company posted an encouraging third quarter earnings forecast that surpassed analyst expectations.
On an adjusted basis, the restaurant operator said that it expects diluted net earnings per share from continuing operations to be approximately $1.18 to $1.21, topping estimates of $1.06 per share, according to MarketWatch. The adjusted results exclude debt breakage costs from the early retirement of debt and other fees associated with the spin-off of Four Corners Property Trust.
Other highlights from Darden’s third quarter outlook include:
- Net earnings per share from continuing operations are expected to be approximately $0.81 to $0.84
- Same-restaurant sales are expected to increase approximately 6%
- On a comparable calendar basis, Darden expects same-restaurant sales to increase approximately 4%
In addition to its third quarter financial expectations, Darden appointed former Chief Strategy Officer Ricardo Cardenas as its new Senior Vice President and Chief Financial Officer. Cardenas is replacing Jeffrey Davis, who has left the organization to pursue other opportunities.
Meanwhile, Harald Herrmann, President, Specialty Restaurant Group, said that he will be stepping down from his position, effective August 2016. He will serve as Senior Vice President, Special Projects until his departure.
Lastly, Darden said that it has implemented a new reporting structure for its dining brands. The Capital Grille and Eddie V’s and Yard House will become direct reports to CEO Eugene Lee, Jr. Olive Garden President Dave George will assume additional responsibilities through oversight of Seasons 52 and Bahama Breeze along with his current role.
“Our continued success and momentum is a direct result of executing against our plan and maintaining our focus on consistently delivering outstanding guest experiences,” Lee said in a press release. “I am confident that the leadership appointments and organizational changes we announced today will further strengthen our organization and will allow us to maintain our positive momentum.”
Stay tuned for more upcoming news on Darden’s financial performance.
