World Stock Watch

Darden Restaurants Sees Surge in Sales and Profits

Strong Quarter for Olive Garden and LongHorn Steakhouse

Darden Restaurants, the parent company of popular chains like Olive Garden and LongHorn Steakhouse, has reported a stellar quarter with earnings and revenue meeting analysts’ expectations. The company’s shares soared 8% in premarket trading, driven by better-than-expected same-store sales growth at its flagship brands.

Financial Highlights

Darden reported a net income of $215.1 million, or $1.82 per share, up from $212.1 million, or $1.76 per share, in the same period last year. Excluding costs related to its acquisition of Chuy’s, the company earned $2.03 per share. Net sales rose 6% to $2.89 billion, driven by strong performances from Olive Garden and LongHorn Steakhouse.

Same-Store Sales Growth

LongHorn Steakhouse led the charge with a 7.5% increase in same-store sales, surpassing Wall Street estimates of 4.1%. Olive Garden, which accounts for over 40% of Darden’s quarterly revenue, saw same-store sales growth of 2%, beating estimates of 1.4%. The fine-dining segment, which includes The Capital Grille and Ruth’s Chris Steak House, reported a 5.8% decline in same-store sales, steeper than expected.

Expansion and Outlook

Darden added 39 net new locations in the quarter, including 103 Chuy’s restaurants acquired in October. The company updated its fiscal 2025 outlook to include Chuy’s results, anticipating total sales of $12.1 billion, up from its prior estimate. Darden reiterated its forecast for net earnings per share from continuing operations of $9.40 to $9.60.

What’s Next?

With its strong quarter and expanded portfolio, Darden Restaurants is poised for continued growth. As consumers continue to seek value and quality in their dining experiences, Olive Garden and LongHorn Steakhouse are well-positioned to capitalize on this trend.