Insights on Darden

Jun 27, 2022 | Bubble Monitor

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Key Points from Darden’s recently reported financial results for its fiscal 4Q22 ended 5/29/22. 

  • A +3% menu price increase for fiscal 2022 was half annual inflation of +6% as Darden competes by keeping things affordable.
  • Commodity inflation of +12% during FY4Q22 is expected to increase to mid-teens during FY1Q23 before moderating significantly later in the year & ending flat during FY4Q23.
  • Hourly wage inflation was +9% during the quarter.
  • Consumer sentiment is at the lowest level in 60 years with less impact on higher-end consumers.
  • If consumers & traffic slow dramatically, then inflation should fall in parallel.
  • A sharp reduction in marketing spend reveals declining confidence in traditional TV ads.
  • Olive Garden’s to-go sales mix was 25% of which 60% is digital.
  • Market cap is in-line with FY19 level.

Darden Fiscal Year Graph

Same Restaurant Sales

Commodities Outlook

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