DRI Earnings
DRI FY1Q23 GAAP EPS of $1.56 in line with Revenue of $2.45B (+6.1% Y/Y) misses by $20M and reaffirms FY2023 Outlook: Total sales of $10.2B to $10.4B vs. consensus of $10.30B; Same-restaurant sales growth of 4% to 6%; 55 to 60 new restaurant openings; Total capital spending of $500M to $550M; Total inflation of approximately 6%; An effective tax rate of approximately 13.5%; Diluted EPS from continuing operations of $7.40 to $8.00 vs. consensus of $7.75; Approximately 124M weighted average diluted shares outstanding. Comps 4.2% vs FactSet 5.1%; Olive Garden +2.3% vs FS +5.4%; Longhorn +4.2% vs FS +5.1%; Fine Dining +7.6% vs FS +5.9%; Operating margin 10% vs FS 9.9%.
We continue to believe that estimates are too aggressive for DRI esp 3Q23 ending in February 2023.
Taco Bell & BYND
We now know what BYND will promote on their earnings call.
Taco Bell and Beyond Meat are finally ready to share what they’ve been cooking up for the last few years. Starting October 13, the Beyond Carne Asada Steak will hit the menu for a limited time (like most BYND trials) at nearly 50 Taco Bell locations in Dayton, OH. The new vegan steak is made to mimic Taco Bell’s existing marinated steak in flavor and texture but does not contain any animal-derived ingredients. “We know that consumers are looking for diverse protein options that are better for the planet without compromising on taste, so we’re incredibly excited to launch our brand-new, innovative Beyond Carne Asada Steak,” Dariush Ajami, Beyond Meat’s Chief Innovation Officer, said in a statement. “Designed to specifically complement the bold, savory flavors that Taco Bell is known for, Beyond Carne Asada Steak delivers the flavorful, delicious taste and texture of marinated, grilled steak with the added benefits of plant-based meat.”
