Shares of Darden Restaurants (DRI 98.08, -1.35) have retreated 1.4% even though the company raised its guidance for fiscal year 2018.
The operator of restaurant brands like LongHorn Steakhouse, Olive Garden, Eddie V's, and The Capital Grille, among others, announced that it now expects to earn between $4.70 and $4.78 per share, up from its previous guidance for earnings of $4.59 per share in fiscal year 2018.
The company's new guidance range includes plans for $20 million in workforce-oriented investments during the fiscal year.
Darden noted that lower corporate tax rates will reduce the company's 2018 effective tax rate by 600 basis points. An expected resolution of tax matters unrelated to changes in the tax code is expected to reduce the company's effective tax rate by another 100 basis points. The company expects that its effective tax rate will be about 18.0% for the fiscal year.
Darden maintained its expectations for same-restaurant sales growth (+2.0% year-over-year) and total sales growth (+13.0% year-over-year).