LongHorn up, Olive Garden down: Darden earnings hint at dinings sales drag

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Darden Restaurants on Thursday reported mixed quarterly results as Olive Garden’s same-store sales fell for the second consecutive quarter.

For fiscal 2025, Darden is forecasting that its same-store sales will grow just 1% to 2%. Shares of the company rose more than 2% in premarket trading. Darden reported fiscal fourth-quarter net income of $308.1 million, or $2.57 per share, down from $315.1 million, or $2.58 per share, a year earlier. Excluding costs related to the Ruth’s Chris acquisition and other items, the company earned $2.65 per share. Net sales rose 6.8% to $2.

Darden’s fine-dining restaurants, which include The Capital Grille and Eddie V’s, saw their same-store sales shrink 2.6% in the quarter. That division now includes Ruth’s Chris, but those same-store results won’t be included in the category total for several more quarters. LongHorn Steakhouse, which is overtaking Olive Garden as the gem of Darden’s portfolio, was the only segment to report same-store sales growth. The chain’s same-store sales rose 4% in the quarter.

 

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Darden beats on earnings, even as Olive Garden, fine-dining sales dragOlive Garden owner Darden Restaurants reported flat same-store sales growth in its latest quarter.
Source: CNBC - 🏆 12. / 72 Read more »