Darden Restaurants Q2 2025 Earnings

A sign hangs on the front of an Olive Garden restaurant on June 22, 2023 in Chicago, Illinois.

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Darden Restaurants Reports Quarterly Earnings and Revenue

Darden Restaurants 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. Shares of the company rose 8% in premarket trading.

Financial Highlights

Here are the key financial highlights:

• Earnings per share: $2.03 adjusted. That may not compare with the $2.02 expected
• Revenue: $2.89 billion. That may not compare with the $2.9 billion expected

Quarterly Results

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. Excluding costs related to its acquisition of Chuy’s, the restaurant company earned $2.03 per share.

Same-Store Sales

Darden’s same-store sales rose 2.4%, beating StreetAccount estimates of 1.5%. LongHorn Steakhouse reported same-store sales growth of 7.5%, while Olive Garden saw same-store sales growth of 2%. The company’s fine-dining segment, which includes The Capital Grille and Ruth’s Chris Steak House, reported same-store sales declines of 5.8%, while its last remaining segment, which includes Cheddar’s Scratch Kitchen and Yard House, saw same-store sales growth of 0.7%.

New Locations and Acquisition

Darden added 39 net new locations in the quarter, as well as 103 Chuy’s restaurants. Darden completed its $605 million acquisition of Chuy’s in October.

Outlook

The company updated its fiscal 2025 outlook to include Chuy’s results, although the chain won’t be included in its same-store sales metrics until the fiscal fourth quarter in 2026. The company now anticipates total sales of $12.1 billion, up from its prior estimate of $11.8 billion to $11.9 billion. Darden reiterated its forecast for net earnings per share from continuing operations of $9.40 to $9.60.

Conclusion

Darden Restaurants’ quarterly earnings and revenue report met analysts’ expectations and showed better-than-expected same-store sales growth at Olive Garden and LongHorn Steakhouse. The company’s strong performance and updated outlook are likely to be welcomed by investors.

FAQs

Q: What were Darden’s quarterly earnings and revenue?

A: Darden reported fiscal second-quarter net income of $215.1 million, or $1.82 per share, and revenue of $2.89 billion.

Q: How did Darden’s same-store sales perform?

A: Darden’s same-store sales rose 2.4%, beating StreetAccount estimates of 1.5%. LongHorn Steakhouse reported same-store sales growth of 7.5%, while Olive Garden saw same-store sales growth of 2%.

Q: What was the impact of Chuy’s acquisition on Darden’s results?

A: Darden added 103 Chuy’s restaurants in the quarter and reported net income of $215.1 million, or $1.82 per share, excluding costs related to its acquisition of Chuy’s.