Darden Restaurants, Inc. (NYSE:DRI) stock rose 0.69% (As on March 22, 11:23:50 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the third quarter of FY 24. During the fiscal third quarter, sales at Olive Garden increased 0.7% year over year to $1.3 billion. Comps in the segment dropped 1.8% year over year against 4.1% growth reported in the previous quarter. At LongHorn Steakhouse, sales were up 5.1% year over year to $730.7 million. Comps in the segment rose 2.3% year over year compared with a 4.9% growth reported in the previous quarter. Sales in Fine Dining increased 58.3% year over year to $372.9 million. Sales at Other Business rose 1.3% year over year to $561 million.

DRI in the third quarter of FY 24 has reported the adjusted earnings per share of $2.62, missing the analysts’ estimates for the adjusted earnings per share of $2.63, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 6.8 percent to $2.97 billion in the third quarter of FY 24, missing the analysts’ estimates for revenue of $3.03 billion.

Additionally, as of Feb 25, 2024, cash and cash equivalents came in at $243.9 million compared with $195.7 million as of Nov 26, 2023. During the fiscal third quarter, inventories came in at $298.2 million compared with $310.6 million reported in the previous quarter. As of Feb 25, 2024, long-term debt was $1.3 billion compared with $1.4 billion as of Nov 26, 2023. During the fiscal third quarter, Darden’s board of directors repurchased approximately 0.2 million shares of its common stock, worth approximately $33 million. During the quarter, the company initiated a new $1-billion repurchase program, replacing the previously existing share repurchase authorization. Darden declared a quarterly cash dividend of $1.31 per share. The dividend will be payable on May 1, 2024, to shareholders of record as of Apr 10, 2024.

For fiscal 2024, the company expects total sales to be approximately $11.4 billion compared with the previous projection of $11.5 billion. Same-restaurant sales growth in fiscal 2024 is anticipated to be in the range of 1.5-2% year over year from the previous expectation of 2.5-3%. EPS from continuing operations are anticipated in the band of $8.80-$8.90 compared with the previous guidance of $8.75-$8.90. The company expects to open 50-55 net new restaurants and projects a total capital spending of $600 million in fiscal 2024.