Darden Restaurants on Thursday reported weaker-than-expected sales as Olive Garden and LongHorn Steakhouse underperformed analysts\u2019 projections.<\/p>\n
Shares of the company were up in premarket trading.<\/p>\n
Here\u2019s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:<\/p>\n
Darden reported fiscal third-quarter net income of $323.4 million, or $2.74 per share, up from $312.9 million, or $2.60 per share, a year earlier.<\/p>\n
Excluding costs related to its acquisition of Chuy\u2019s, Darden earned $2.80 per share.<\/p>\n
Net sales rose 6.2% to $3.16 billion, fueled largely by the addition of Chuy\u2019s restaurants to its portfolio.<\/p>\n
Darden\u2019s same-store sales rose 0.7%, less than the 1.7% increase expected by analysts, according to StreetAccount estimates.<\/p>\n
Both Olive Garden and LongHorn Steakhouse, which are typically the two standouts of Darden\u2019s portfolio, reported underwhelming same-store sales growth. Olive Garden\u2019s same-store sales rose 0.6%. Analysts were anticipating same-store sales growth of 1.5%. And LongHorn\u2019s same-store sales increased 2.6%, missing analysts\u2019 expectations of 5% growth.<\/p>\n
Darden\u2019s fine dining segment, which includes The Capital Grille and Ruth\u2019s Chris Steak House, reported same-store sales declines of 0.8%.<\/p>\n
The last segment of Darden\u2019s business, which includes Cheddar\u2019s Scratch Kitchen and Yard House, saw same-store sales shrink 0.4% in the quarter.<\/p>\n
For the full year, Darden reiterated its forecast for revenue of $12.1 billion. It narrowed its outlook for adjusted earnings from continuing operations to a range of $9.45 to $9.52 per share. Its prior forecast was $9.40 to $9.60 per share.<\/p>\n
Darden\u2019s fiscal 2025 outlook includes Chuy\u2019s results, but the Tex-Mex chain won\u2019t be included in its same-store sales metrics until the fiscal fourth quarter in 2026.<\/p>\n<\/p>\n
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