Darden Restaurants (DRI) has reported mixed financial results for this year’s second quarter.
The company, which runs the Olive Garden and LongHorn Steakhouse chains, announced earnings per share (EPS) of $1.97 U.S., which was below the $2 U.S. expected on Wall Street.
Revenue in the April through June period totaled $3.04 billion U.S., which was in line with the consensus expectation of analysts.
Sales were up 10% year-over-year in the quarter due mostly to the company’s acquisition of Chuy’s Tex Mex restaurants in autumn 2024.
Despite the mixed print, Darden raised its full-year revenue forecast, although it only reiterated its earnings outlook.
Darden’s same-store sales rose 4.7% in the quarter. Olive Garden reported same-store sales growth of 5.9%, while LongHorn Steakhouse saw its same-store sales increase 5.5%.
The company’s other restaurant chains, which include Cheddar’s Scratch Kitchen and Yard House, reported same-store sales growth of 3.3%.
For the entire year, Darden Restaurants is projecting revenue growth of 7.5% to 8.5%, up from its previous forecast of 7% to 8% growth.
Management reiterated their outlook for earnings in a range of $10.50 U.S. to $10.70 U.S. per share.
Darden sold its Canadian Olive Garden restaurants earlier this year.
DRI stock fell 7% on news of its latest financial results. Prior to Sept. 18, the company’s share price had risen 12% on the year to trade at $208.79 U.S. per share.
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