Darden Restaurants reported weaker-than-expected sales for the fiscal third quarter, with both Olive Garden and LongHorn Steakhouse underperforming analysts’ projections. Despite this, the company’s earnings per share of $2.80 adjusted exceeded expectations of $2.79, while revenue of $3.16 billion fell short of the expected $3.21 billion. Net income for the quarter was $323.4 million, up from $312.9 million the previous year.
Darden’s same-store sales rose 0.7%, below the 1.7% increase expected by analysts, with Olive Garden and LongHorn Steakhouse reporting underwhelming growth. Olive Garden’s same-store sales increased by 0.6%, while LongHorn’s grew by 2.6%, missing expectations of 5%. The company’s fine dining segment, including The Capital Grille and Ruth’s Chris Steak House, saw a decline of 0.8% in same-store sales. The segment including Cheddar’s Scratch Kitchen and Yard House experienced a 0.4% decline.
Despite the sales challenges, Darden reaffirmed its full-year revenue forecast of $12.1 billion and adjusted earnings expectations of $9.45 to $9.52 per share. The company’s fiscal 2025 outlook includes results from Chuy’s, although the Tex-Mex chain will not be included in same-store sales metrics until the fiscal fourth quarter of 2026. Shares of Darden were up in premarket trading following the earnings report.
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