Darden Restaurants, Inc. (NYSE:DRI) Q2 2023 Earnings Call Transcript

Jake Bartlett : Okay. And maybe just within that, if you could talk about just what you assume in your guidance for a macro environment. We’re seeing, obviously, continued wage inflation. But if you build in — others have talked about a modest recession or what have you. What is your basic framework on a macro perspective that’s embedded in your sales outlook?

Rajesh Vennam: Well, I think what we’re incorporating is some potential shifts, changes in consumer behavior. That’s why you have a range of 3 percentage points on traffic. If you look at the back half — and if you look at — translate that into the guidance range we have, that implies a range of 3 points, that is to accommodate potential changes in consumer behavior, but not a step change. And I said earlier, if there is a major step change, that’s not really contemplated in our guidance.

Jake Bartlett : Great. And then a quick question on G&A as a follow-up. I believe the guidance kind of — before you’ve been talking about $400 million as being a good number for the year. You’re running significantly behind that run rate in the first half, you commented that you expect it to go higher. But just roughly, what should we expect for just G&A as a whole for the year in ’23 — fiscal ’23?

Rajesh Vennam: Yes, Jake, at this point, our best estimate is $390 million.

Operator: Thank you. At this time, it appears we have no further questions in queue. I’d like to turn it back to management for any additional or closing remarks.

Kevin Kalicak: Thanks, Todd. That concludes our call. I’d like to remind you that we plan to release third quarter results on Thursday, March 23, before the market opens with a conference call to follow. Thank you for participating in today’s call. Have a great holiday and happy new year.

Operator: This will conclude our call today. We thank you for your participation. You may disconnect at any time.