The Olive Garden logo design is shown on the front of an Olive Garden Italian dining establishment in Edmonton, Alberta, Canada, on February 15, 2025.
Artur Widak|Nurphoto|Getty Images
Darden Restaurants on Thursday reported weaker-than-expected sales as Olive Garden and LongHorn Steakhouse underperformed experts’ forecasts.
Shares of the business dropped virtually 1% in premarket trading.
Here’s what the business reported compared to what Wall Street was anticipating, based upon a study of experts by LSEG:
- Earnings per share: $2.80 changed vs. $2.79 anticipated
- Revenue: $3.16 billion vs. $3.21 billion anticipated
Darden reported monetary third-quarter take-home pay of $323.4 million, or $2.74 per share, up from $312.9 million, or $2.60 per share, a year previously.
Excluding prices associated with its procurement of Chuy’s, Darden gained $2.80 per share.
Net sales climbed 6.2% to $3.16 billion, sustained mainly by the enhancement of Chuy’s dining establishments to its profile.
Darden’s same-store sales climbed 0.7%, much less than the 1.7% boost anticipated by experts, according to Street Account price quotes.
Both Olive Garden and LongHorn Steakhouse, which are commonly both standouts of Darden’s profile, reported underwhelming same-store sales development. Olive Garden’s same-store sales climbed 0.6%. Analysts were preparing for same-store sales development of 1.5%. And LongHorn’s same-store sales raised 2.6%, missing out on experts’ assumptions of 5% development.
Darden’s fine-dining section, that includes The Capital Grille and Ruth’s Chris Steak House, reported same-store sales decreases of 0.8%.
The last section of Darden’s service, that includes Cheddar’s Scratch Kitchen and Yard House, saw same-store sales reduce 0.4% in the quarter.
For the complete year, Darden stated its projection for income of $12.1 billion. It tightened its expectation for modified profits from proceeding procedures to a variety of $9.45 to $9.52 per share. Its prior projection was $9.40 to $9.60 per share.
Darden’s monetary 2025 expectation consists of Chuy’s results, yet the Tex-Mex chain will not be consisted of in its same-store sales metrics till the monetary 4th quarter in 2026.
