Darden Restaurants (DRI) Q2 2025 earnings

Darden Restaurants on Thursday reported quarterly earnings and income that met analysts’ expectations and better-than-expected same-store gross sales development at Olive Backyard and LongHorn Steakhouse.

Shares of the corporate rose 8% in premarket buying and selling.

Here is what the corporate reported, which can not evaluate with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG:

• Earnings per share: $2.03 adjusted. That will not evaluate with the $2.02 anticipated
• Income: $2.89 billion. That will not evaluate with the $2.9 billion anticipated

Darden reported fiscal second-quarter internet revenue of $215.1 million, or $1.82 per share, up from $212.1 million, or $1.76 per share, a yr earlier.

Excluding prices associated to its acquisition of Chuy’s, the restaurant firm earned $2.03 per share.

Web gross sales rose 6% to $2.89 billion.

Darden’s same-store gross sales rose 2.4%, beating StreetAccount estimates of 1.5%.

LongHorn Steakhouse reported same-store gross sales development of seven.5%. The casual-dining chain has been a prime performer in Darden’s portfolio in recent times, profitable over prospects with each the standard of its meals and its costs. Wall Avenue was anticipating the chain to report same-store gross sales development of 4.1%.

Olive Backyard, which accounts for greater than 40% of Darden’s quarterly income, noticed same-store gross sales development of two% within the quarter. Analysts had been anticipating same-store gross sales development of 1.4%, based on StreetAccount.

Darden’s fine-dining section, which incorporates The Capital Grille and Ruth’s Chris Steak Home, reported same-store gross sales declines of 5.8%, steeper than the two.8% lower anticipated by analysts. Advantageous-dining chains’ increased costs have scared away many customers who’re attempting to spend much less at eating places.

The corporate’s final remaining section, which incorporates Cheddar’s Scratch Kitchen and Yard Home, noticed same-store gross sales development of 0.7%, in keeping with estimates.

Darden added 39 internet new areas within the quarter, in addition to 103 Chuy’s eating places. Darden accomplished its $605 million acquisition of the Tex-Mex chain in October.

The corporate up to date its fiscal 2025 outlook to incorporate Chuy’s outcomes, though the chain will not be included in its same-store gross sales metrics till the fiscal fourth quarter in 2026. The corporate now anticipates whole gross sales of $12.1 billion, up from its prior estimate of $11.8 billion to $11.9 billion. Darden reiterated its forecast for internet earnings per share from persevering with operations of $9.40 to $9.60.