Key TakeawaysThe S&P 500 slipped 0.1% on Thursday, Dec. 19, 2024, as stocks struggled to recover from the prior day's sell-off despite upbeat data on economic growth.Frozen potato distributor Lamb Weston reported an unexpected quarterly loss, citing weak international demand, and its shares tumbled.Darden Restaurants shares surged as sales growth from its LongHorn Steakhouse chain helped drive strong quarterly results. Major U.S. equities indexes finished Thursday little changed after a sharp sell-off a day ...

Group 1 - The company has maintained a hold rating for Darden Restaurants, Inc. (NYSE: DRI) over the past few months following a successful public trade [1] - The trading principal was backed out, but there is a suggestion for investors to engage further to capture potential gains [1] Group 2 - A holiday deal has been activated ahead of a price increase scheduled for January 1st, offering a significant discount for new members [2] - The promotion encourages immediate action to secure the best pricing available in years [2]

Darden Restaurants’ sales climbed this quarter despite diners shying away from its fine-dining establishments.The company, owner of chains such as Olive Garden and LongHorn Steakhouse, released earnings Thursday (Dec. 19) that showed total sales increasing 6% to $2.9 billion.While sales were up 7.5% at LongHorn and 2% for Olive Garden, sales for the company’s fine dining restaurants — Ruth’s Chris Steak House, Eddie V’s Prime Seafood and The Capital Grille — fell by nearly 6% for the quarter.CEO Rick Carden ...

Shares of Darden Restaurants, Inc. (NYSE: DRI ) have been a choppy performer over the past year, as years of elevated inflation have sapped consumers of some discretionary purchasing power. However, investors got good news on ThursdayOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Ana ...

What's cooking at Darden Restaurants? Thursday's stock surge reflected a robust earnings report with a side of bullish guidance.Shares of Darden Restaurants (DRI 14.96%) soared to a new all-time high on Thursday morning following the release of robust second-quarter results. The restaurant operator's stock peaked at an overnight gain of 18.1% before backing down to a 15.5% uptick at 1:30 p.m. ET.Darden's Q2 by the numbersThe company behind restaurant chains such as Olive Garden, Cheddar's Scratch Kitchen, a ...

Financial Data and Key Metrics Changes - Total sales for the second quarter reached $2.9 billion, a 6% increase compared to the previous year, driven by same restaurant sales growth of 2.4% and the acquisition of 103 Chuy's restaurants [32][33] - Adjusted diluted net earnings per share from continuing operations were $2.03, reflecting a 10% increase year-over-year [33] - Adjusted EBITDA for the quarter was $445 million, with a return of $308 million to shareholders through dividends and share repurchases [33][34] Business Line Data and Key Metrics Changes - Olive Garden's total sales increased by 3.3%, with same-restaurant sales growth of 2%, outperforming the industry benchmark by 100 basis points [37] - LongHorn Steakhouse saw total sales rise by 10.4%, driven by same restaurant sales growth of 7.5%, exceeding the industry benchmark by 650 basis points [38] - The fine dining segment experienced a 3.8% decrease in total sales, with negative same restaurant sales across all fine dining brands due to the Thanksgiving holiday shift and hurricanes [39] Market Data and Key Metrics Changes - Industry same restaurant sales grew by 1%, while guest counts decreased by 1.8% [6] - Darden's same restaurant sales were 140 basis points better than the industry average, with guest counts also exceeding the industry by 140 basis points [32] Company Strategy and Development Direction - The company continues to focus on a "back to basics" operating philosophy, emphasizing food, service, and atmosphere across its brands [9][29] - Darden is integrating Chuy's into its operations, aiming to preserve its unique culture while leveraging Darden's platform for efficiency [20][21] - The company plans to maintain its competitive advantage through proprietary technology and extensive data insights [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and brand strength, despite challenges from hurricanes and market conditions [28][29] - The company anticipates a sales benefit from the Thanksgiving holiday shift in the third quarter, with expectations for continued positive same restaurant sales growth [31][41] - Management noted a positive trend in consumer sentiment and increased visits from middle-income consumers, which may benefit casual dining brands [102][104] Other Important Information - Darden's response to hurricanes included a $500,000 grant to the American Red Cross and $1.1 million in grants to impacted team members [26][28] - The company expects total inflation of approximately 2.5% for the fiscal year, with specific inflationary pressures on food and labor costs [41][128] Q&A Session Summary Question: Insights on Olive Garden's performance and advertising spend - Management acknowledged that while the sales gap to the industry is narrower, they are focused on profitable growth rather than aggressive discounting [49][50] - Marketing spend for Olive Garden is down but not as significantly as suggested, with potential increases in the second half of the year [52][55] Question: Marketing and promotional strategies for the upcoming quarter - Management confirmed that advertising will look different in the third quarter, with the return of fan-favorite menu items and a compelling price point [60][61] Question: LongHorn's performance and marketing strategy - LongHorn's focus on quality and experience has driven strong sales growth, with management confident in their strategy despite low marketing spend [72][73] Question: Impact of Uber Eats partnership on sales - The pilot program for Uber Eats has shown positive results, accounting for about 1.5% of sales in participating restaurants, but management does not expect it to be a significant impact on comps yet [137][138] Question: Guidance on G&A and interest expenses post-Chuy's acquisition - Management provided updated guidance for G&A expenses at approximately $470 million and interest expenses around $47 million per quarter [117][118] Question: Total inflation outlook and margin progression - Management expects total inflation of approximately 2.5%, with food and labor costs driving the increase in the back half of the year [127][128]

Core Insights - Darden Restaurants shares surged 14% following better-than-expected second-quarter sales and adjusted profit, driven by strong performance at LongHorn Steakhouse [1][6] - The company reported net income of $215.1 million, or $1.82 per share, on revenue of $2.89 billion, surpassing analyst expectations [2] - Adjusted earnings per share (EPS) were $2.03, slightly above the forecast [3] Sales Performance - LongHorn Steakhouse experienced a 7.5% year-over-year increase in same-restaurant sales, exceeding the anticipated 4.3% growth [4] - Olive Garden's same-restaurant sales rose by 2%, while fine dining operations saw a decline of 5.8%, nearly double the expected 3% drop [4] Financial Outlook - Darden raised its fiscal 2025 revenue projection to approximately $12.1 billion, up from the previous range of $11.8 billion to $11.9 billion [5] - The company expects same-restaurant sales growth of 1.5%, narrowed from a previous estimate of 1% to 2%, while maintaining its EPS outlook from continuing operations at $9.40 to $9.60 [5]

Core Insights - Darden Restaurants, Inc. (DRI) reported mixed results for the second quarter of fiscal 2025, with earnings per share (EPS) missing estimates while revenues exceeded expectations [1][3][4] Financial Performance - Adjusted EPS for the fiscal second quarter was $2.03, below the Zacks Consensus Estimate of $2.05, compared to $1.84 in the same quarter last year [3] - Total sales reached $2.89 billion, surpassing the consensus mark of $2.87 billion, reflecting a 6% year-over-year increase, supported by a 2.4% increase in same-restaurant sales [4] Segment Performance - Olive Garden sales increased 3.3% year over year to $1.29 billion, with same-restaurant sales up 2% [5] - LongHorn Steakhouse saw a 10.4% year-over-year sales increase to $710.1 million, with same-restaurant sales rising 7.5% [6] - Fine Dining segment sales decreased 3.8% year over year to $306 million, with same-restaurant sales down 5.8% [6] - Other Business segment sales rose 12.9% year over year to $581.4 million, with same-restaurant sales up 0.7% [7] Operating Costs - Total operating costs and expenses increased 6.1% year over year to $2.6 billion, primarily due to higher restaurant expenses, labor costs, and marketing expenses [8] Balance Sheet - As of November 24, 2024, cash and cash equivalents were $217.3 million, up from $194.8 million as of May 26 [9] - Inventories increased to $318 million from $297.7 million in the previous quarter, while long-term debt rose to $2.12 billion from $1.37 billion [9] Share Repurchase - During the fiscal second quarter, Darden repurchased approximately 0.9 million shares for about $142 million, with $601 million remaining under the $1 billion repurchase authorization [10] Fiscal 2025 Outlook - Darden expects total sales of approximately $12.1 billion for fiscal 2025, with same-restaurant sales growth anticipated at 1.5% year over year and diluted EPS projected between $9.40 and $9.60 [12]

For the quarter ended November 2024, Darden Restaurants (DRI) reported revenue of $2.89 billion, up 6% over the same period last year. EPS came in at $2.03, compared to $1.84 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.88 billion, representing a surprise of +0.48%. The company delivered an EPS surprise of -0.98%, with the consensus EPS estimate being $2.05.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Str ...

Darden Restaurants (DRI) came out with quarterly earnings of $2.03 per share, missing the Zacks Consensus Estimate of $2.05 per share. This compares to earnings of $1.84 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.98%. A quarter ago, it was expected that this owner of Olive Garden and other chain restaurants would post earnings of $1.81 per share when it actually produced earnings of $1.75, delivering a surprise of -3.3 ...