Darden Stock Surges as LongHorn Steakhouse Strength Powers Sales Growth | Global News Avenue

Darden Restaurants Stock (direct reductase) surged 14% on Thursday, leading gains S&P 500 Index LongHorn Steakhouse shares rose as the company’s second-quarter fiscal 2025 sales and adjusted profit topped expectations for strong results.

Darden, who runs LongHorn, Olive Garden, Ruth’s Chris and other restaurant chains, documented net income $215.1 million, or $1.82 per share income $2.89 billion. Analysts expected profits of $239.5 million, or $2.02 per share, on revenue of $2.86 billion, according to estimates compiled by Visible Alpha.

Darden Report Adjustments Earnings per share (EPS) $2.03, 2 cents higher than expected.

LongHorn growth drives sales

Same store sales LongHorn grew 7.5% year over year, well above analysts’ expectations of 4.3%. Olive Garden’s same-restaurant sales also rose 2%, beating estimates, but its fine dining business fell 5.8%, nearly double analysts’ expectations for a 3% decline.

LongHorn’s performance Strong all year. Executives say consumers are willing to spend on things like steakhouse meals when they feel they’re getting their money’s worth.

Darden updates fiscal year 2025 prospectraising its revenue forecast to about $12.1 billion from the previous range of $11.8 billion to $11.9 billion. The company expects same-store sales to grow 1.5% this year, with growth narrowing to 2% from 1% while maintaining Earnings per share (EPS) The outlook for continuing operations was lowered to $9.60 from $9.40.

With today’s gains, Darden shares are entering positive territory for the year.