Darden Restaurants Beats Earnings Expectations, Fueled by Olive Garden and LongHorn Growth

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Business Notícia

Darden Restaurants,Earnings,Revenue

Darden Restaurants exceeded analysts' revenue and earnings expectations for the second quarter, driven by strong same-store sales growth at Olive Garden and LongHorn Steakhouse. Same-store sales at Olive Garden rose 2%, surpassing expectations of 1.4%, while LongHorn Steakhouse reported a robust 7.5% increase, exceeding the 4.1% forecast. Darden's fine-dining segment, however, saw a 5.8% decline in same-store sales, reflecting the impact of elevated prices on consumer spending. The company also updated its fiscal 2025 outlook to include Chuy's results.

on Thursday reported quarterly earnings and revenue that met analysts' expectations and better-than-expected same-store sales growth at Olive Garden and LongHorn Steakhouse.

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. LongHorn Steakhouse reported same-store sales growth of 7.5%. The casual-dining chain has been a top performer in Darden's portfolio in recent years, winning over customers with both the quality of its food and its prices. Wall Street was expecting the chain to report same-store sales growth of 4.1%.

Darden's fine-dining segment, which includes The Capital Grille and Ruth's Chris Steak House, reported same-store sales declines of 5.8%, steeper than the 2.8% decrease expected by analysts. Fine-dining chains' higher prices have scared away many consumers who are trying to spend less at restaurants.

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