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Restaurant operator $DRI has raised its outlook of non-GAAP earnings per share from continuing operations for fiscal 2018 to the range of $4.70 to $4.78 from the earlier estimate of $4.45-$4.53 per share. Meanwhile, the company confirmed its fully year sales growth guidance of 13%, and reiterated the same-restaurant sales growth estimate of 2%.
$DRI said it is about 30% online now and continues to grow. The company gets lot of data from online orders as it is an important part of the process for simplifying the operation. $DRI will continue to try to migrate as much of that business over as possible. At the end of the day, $DRI got lot of phone-in orders when people are driving home.
$DRI said restaurant labor for 2Q18 was unfavorable by 30 basis points compared to last year due to Cheddar's brand mix. Restaurant labor in the company's legacy Darden brands was in line with last year due to continued productivity gains and sales leverage despite inflation of about 4%.
$DRI now expects FY18 sales growth of about 13% compared to prior estimate of 11.5-13%. Same-restaurant sales growth is now predicted to be about 2% compared to prior forecast of 1-2%. The company lifted FY18 EPS from continuing operations guidance to $4.45-4.53 from $4.38-4.50.
$DRI's same-restaurant sales for 2Q18 increased 3% for Olive Garden and up 3.8% for LongHorn Steakhouse. Same-restaurant traffic rose 1.1% for Olive Garden and up 0.9% for LongHorn Steakhouse. CEO Gene Lee said the company's strong same-restaurant sales and new restaurant growth drove continued market share gains during the quarter.
$DRI reported a rise in 2Q18 earnings from continuing operations driven by higher same-restaurant sales and new restaurant growth. Earnings from continuing operations rose to $88.6MM or $0.71 per share from $79.7MM or $0.64 per share a year ago. Sales grew 15% to $1.9Bil. Adjusted EPS increased 14.1% to $0.73.
$FCPT announced the disposition of an Olive Garden restaurant property leased to $DRI for $5.1MM. The property is located in Pinellas Park, Florida, and is occupied under a triple-net lease with approx. 16 years of term remaining. The sale is the result of an unsolicited offer at a cash cap rate of 4.7%, exclusive of transaction costs.
$DRI reaffirmed its outlook for FY18 total sales growth of 11.5-13%. Same-restaurant sales growth from legacy Darden brands is seen at about 1.0-2.0%. The Olive Garden parent also reaffirmed adjusted diluted net EPS from continuing operations at $4.38-4.50, includes the expected full financial impact of Hurricanes Harvey and Irma.
Olive Garden parent $DRI posted a bump in net earnings from continuing operations of $121.3MM or $0.97 per diluted share for 1Q18, from last year's $111.1MM or $0.89 per share. Total sales soared 12.9% to $1.94Bil, including 11.2% growth from the addition of 141 Cheddar's Scratch Kitchens and 21 other net new restaurants.
$FCPT announced the disposition of an Olive Garden restaurant property leased to $DRI for $5.9MM. The property is located in Fairfax, Virginia, and is occupied under a triple-net lease with approx. 16 years of term remaining. The sale is the result of an unsolicited offer at a cash cap rate of 4.75%, exclusive of transaction costs.
$DRI commented that on the industry in general, it is seeing some weakness in Houston and New York City, but overall the company has not seen a lot of change in the competitive landscape. On the $AMZN's acquisition of $WFM, the company believes people still want to come to restaurants and the acquisition won't have a big impact on $DRI.