A sign hangs in front of the Olive Garden restaurant on June 22, 2023 in Chicago, Illinois.
Scott Olson | Getty Images
Darden Restaurant Quarterly earnings and revenue reported Thursday were in line with analysts’ expectations, and same-store sales growth at Olive Garden and Longhorn Steakhouses were better than expected.
The company’s shares rose 8% in premarket trading.
Here’s what the company reported based on a survey of analysts by London Stock Exchange Group (LSEG), which may not match Wall Street expectations:
- Adjusted earnings per share: $2.03. This may not compare to the expected $2.02
- Revenue: $2.89 billion. This may not compare to the expected $2.9 billion
Darden reported fiscal second-quarter net income of $215.1 million, or $1.82 a share, up from $212.1 million, or $1.76 a share, a year earlier.
Excluding costs related to the Chuy’s acquisition, the restaurant company earned $2.03 per share.
Net sales increased 6% to $2.89 billion.
Darden’s same-store sales rose 2.4%, beating StreetAccount’s forecast of 1.5%.
LongHorn Steakhouse reported same-store sales growth of 7.5%. The casual dining chain has been the top performer in Darden’s portfolio in recent years, winning over customers with its food quality and price. Wall Street expects the chain’s same-store sales to rise 4.1%.
Olive Garden accounted for more than 40% of Darden’s quarterly revenue, and same-store sales rose 2% in the quarter. Analysts expected same-store sales growth of 1.4%, according to StreetAccount.
Darden’s fine dining division, which includes The Capital Grille and Ruth’s Chris Steak House, reported a 5.8% same-store sales decline, a steeper decline than analysts’ expectations for a 2.8% decline. Higher prices at fine dining chains have scared away many consumers trying to spend less at restaurants.
The company’s last remaining segment, which includes Cheddar’s Scratch Kitchen and Yard House, saw same-store sales rise 0.7%, in line with expectations.
Darden added a net 39 new stores and 103 Chuy’s restaurants during the quarter. Dutton is done $605 million acquisition In October, the Tex-Mex chain opened.
The company updated its fiscal 2025 outlook to include Chuy’s results, although the chain won’t include its same-store sales metrics until the fiscal fourth quarter of 2026. The company now expects total sales of $12.1 billion, up from its previous estimate of $11.8 billion to $11.9 billion. Darden reiterated its forecast for net income per share from continuing operations of $9.40 to $9.60.
