ORLANDO, Fla. (AP) — Olive Garden's sales edged up in the latest quarter, boosted by customers ordering up dishes that cost more.
The Italian restaurant chain's sales rose 1 percent at established locations from a year ago for the fiscal quarter ending Nov. 29, according to parent company Darden Restaurants Inc. The uptick was driven by higher prices and a more favorable "menu-mix" of more expensive items. Customer traffic edged down 0.6 percent.
When taking into account the other chains it owns, including The Capital Grille and LongHorn Steakhouse, Darden said overall sales at established locations rose 1.6 percent for the period. The company, based in Orlando, Florida, said it now expects sales to rise between 2.5 and 3 percent for the full fiscal year. Previously, it had forecast an uptick of 2 to 2.5 percent.
Darden also raised its adjusted earnings outlook to $3.25 to $3.35 per share, up from $3.15 to $3.30 per share.
For the quarter, Darden Restaurants Inc. (DRI) said it earned $43.2 million, or 33 cents per share. Earnings, adjusted for one-time gains and costs, came to 54 cents per share. Analysts had expected 42 cents per share, according to Zacks Investment Research.
Revenue was $1.61 billion, which fell short of $1.63 billion Wall Street expected.
Darden Restaurants shares have decreased slightly since the beginning of the year, while the Standard & Poor's 500 index has declined almost 1 percent. The stock has increased slightly more than 2 percent in the last 12 months.