A sign hangs on the facade of Olive Garden restaurant on June 22, 2023 in Chicago, Illinois.
Scott Olsen | Getty Images
Darden Restaurants On Thursday, it reported quarterly earnings and revenue that met analyst expectations and better-than-expected same-store sales growth at Olive Garden and LongHorn Steakhouse.
The company's shares rose 8% in pre-market trading.
Here's what the company reported, which may not compare to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:
Earnings per share: $2.03 adjusted. That may not compare to the expected revenue of $2.02: $2.89 billion. This may not be compared to the expected amount of $2.9 billion
Darden reported fiscal second-quarter net income of $215.1 million, or $1.82 per share, up from $212.1 million, or $1.76 per share, a year earlier.
Excluding costs related to its acquisition of Chuy's, the restaurant company earned $2.03 per share.
Net sales rose 6% to $2.89 billion.
Darden's same-store sales rose 2.4%, beating StreetAccount estimates of 1.5%.
LongHorn Steakhouse reported same-store sales growth of 7.5%. The casual dining chain has been the best performer in Darden's portfolio in recent years, attracting customers with the quality of its food and prices. Wall Street had expected the chain to report same-store sales growth of 4.1%.
Olive Garden, which accounts for more than 40% of Darden's quarterly revenue, saw same-store sales grow 2% during the quarter. Analysts had expected same-store sales to grow 1.4%, according to StreetAccount.
Darden's fine dining segment, which includes The Capital Grille and Ruth's Chris Steak House, reported a same-store sales decline of 5.8%, steeper than the 2.8% decline analysts had expected. Rising prices at upscale restaurant chains have scared off many consumers who are 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 grow 0.7%, in line with estimates.
Darden added 39 net new locations in the quarter, in addition to 103 Chuy's restaurants. Darden completed its $605 million acquisition of the Tex-Mex chain in October.
The company has updated its 2025 financial outlook to include Chuy's results, although the chain will not be included in 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 dollars. Darden reiterated its forecast for net earnings per share from continuing operations of $9.40 to $9.60.
