Financial Data and Key Metrics Changes - The company reported same restaurant sales growth of 2.6% for the third quarter, showing sequential improvement from prior quarters [22] - Adjusted diluted net earnings per share from continuing operations increased by 6.9% year-over-year to $2.80 [23] - Adjusted EBITDA for the quarter was $559 million, with total sales for the quarter reaching $3.23 billion [23][28] Business Line Data and Key Metrics Changes - Olive Garden's total sales increased by 1.5%, driven by same restaurant sales growth of 0.6% [25] - Longhorn Steakhouse saw total sales increase by 5.1%, with same restaurant sales growth of 2.6% [26] - The Fine Dining segment experienced a 3.3% increase in total sales, although same restaurant sales were negative at 0.8% [27] - The Other Business segment, primarily driven by the acquisition of Chuy's, saw sales increase by 20.2% [27] Market Data and Key Metrics Changes - The average same restaurant sales for the industry grew by 0.9%, while guest counts decreased by 1.2% [6] - The median same restaurant sales for the industry decreased by 2.3%, indicating a significant disparity between average and median results [6] Company Strategy and Development Direction - The company is focusing on integrating Chuy's and leveraging its existing brands to drive sales growth [18][42] - New smaller restaurant prototypes are being tested to lower construction costs and accelerate new restaurant openings [16][17] - The company plans to open between 60 and 65 new restaurants in fiscal 2026, with a capital expenditure of $375 million to $400 million for new restaurants [28][29] Management's Comments on Operating Environment and Future Outlook - Management noted that same restaurant sales trends improved in January and February, exceeding industry benchmarks by over 100 basis points [21] - The company remains confident in its strategy and business model, which continues to drive success despite external challenges [30] - Management acknowledged that while consumer sentiment is less optimistic, it has not significantly impacted dining out trends [94] Other Important Information - The company has awarded 98 scholarships worth $3,000 each to the children of team members through its Next Core scholarship program [19] - The company is experiencing a general rise in value perception at Olive Garden, attributed to improved operational performance [81] Q&A Session Summary Question: Is the improvement seen more related to the company's own brands or the industry? - Management indicated that Olive Garden and Longhorn continue to perform well, with overall positive trends reflected in guidance for above 3% same restaurant sales growth [34] Question: What degree of flu impact was observed in the quarter? - Management could not quantify the flu's impact but noted that weather had a more significant effect on sales [40] Question: Can you provide insights on the Uber partnership and advertising spend? - Management stated that while Uber is contributing to advertising costs, the company is funding a larger portion and expects modest impacts on overall advertising spend [47][49] Question: Can you elaborate on the EPS guidance for the fourth quarter? - Management explained that inflation is expected to rise to about 3% in Q4, impacting operating margins, which are not expected to grow materially year-over-year [55] Question: What is driving Olive Garden's recent sales momentum? - Management attributed the sales momentum more to menu news rather than delivery, as the delivery rollout occurred late in the quarter [73] Question: How is the company managing inflation and labor costs? - Management noted that commodity prices are being managed effectively, with labor inflation stabilizing in the mid-3% range [77][78] Question: What is the company's exposure to potential tariffs? - Management indicated that about 80% of the cost basket is domestically sourced, with strategies in place to mitigate risks associated with tariffs [87][89]

In this articleThe Olive Garden logo is displayed on the front of an Olive Garden Italian restaurant in Edmonton, Alberta, Canada, on February 15, 2025.Darden Restaurants on Thursday reported weaker-than-expected sales as Olive Garden and LongHorn Steakhouse underperformed analysts' projections.Shares of the company fell nearly 1% in premarket trading.Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earnings per share: $2.80 adjusted vs. $2 ...

Third Quarter 2025 Financial Highlights, Comparisons Versus Same Fiscal Quarter Last Year | Consolidated Darden* | 0.7% | | --- | --- | | Olive Garden | 0.6% | | LongHorn Steakhouse | 2.6% | | Fine Dining | (0.8)% | | Other Business* | (0.4)% | * Will not include Chuy's until they have been owned and operated by Darden for a 16-month period (Q4 Fiscal 2026) ** See the "Non-GAAP Information" below for more details "We had a solid quarter, and I am proud of how our teams managed their business and controlled ...

ORLANDO, Fla., March 20, 2025 /PRNewswire/ -- Darden Restaurants, Inc. (NYSE:DRI) today reported its financial results for the third quarter ended February 23, 2025. Third Quarter 2025 Financial Highlights, Comparisons Versus Same Fiscal Quarter Last Year Total sales increased 6.2% to $3.2 billion, driven by a blended same-restaurant sales* increase of 0.7% and sales from the acquisition of 103 Chuy's restaurants and 40 net new restaurants Same-restaurant sales: Consolidated Darden* 0.7 % Oli ...

Core Insights - Darden Restaurants, Inc. is set to release its third-quarter financial results on March 20, with expected earnings of $2.79 per share, an increase from $2.62 per share in the same quarter last year [1] - The company projects quarterly revenue of $3.22 billion, up from $2.97 billion a year earlier [1] Analyst Ratings - Truist Securities analyst Jake Bartlett maintained a Buy rating and raised the price target from $200 to $212 on March 17, 2025, with a 72% accuracy rate [4] - Raymond James analyst Brian Vaccaro maintained an Outperform rating and increased the price target from $200 to $210 on January 28, 2025, with an 80% accuracy rate [4] - Barclays analyst Jeffrey Bernstein maintained an Overweight rating and boosted the price target from $206 to $230 on January 7, 2025, with a 64% accuracy rate [4] - Oppenheimer analyst Brian Bittner maintained an Outperform rating and increased the price target from $200 to $218 on January 7, 2025, with a 66% accuracy rate [4] - Stifel analyst Chris O'Cull maintained a Buy rating and boosted the price target from $190 to $205 on December 20, 2024, with a 75% accuracy rate [4]

Group 1 - Oppenheimer analyst Brian Bittner reiterated an Outperform rating on Darden Restaurants, Inc. (DRI) with a price forecast of $218 [1] - Darden is set to release its fiscal 2025 third quarter financial results on March 20, with shares showing a year-to-date increase of 0.7% despite concerns over discretionary consumer spending [1][3] - Bittner raised the stock to a "top pick" in January, based on expectations of a positive earnings cycle in fiscal 2026 starting in late May [2] Group 2 - The analyst remains confident in catalysts for growth, including new sales drivers like OG delivery, and believes that Street margin forecasts are overly conservative [3] - Darden's third-quarter faced industry-wide challenges such as calendar shifts, adverse weather, a tough flu season, and consumer weakness [4] - The analyst forecasts same-store sales growth at 1.2%, below the Street's estimate of 1.7%, with specific segment expectations of 1.0% growth for OG and 4.5% for LH [4] Group 3 - Due to updated same-store sales projections, the earnings per share estimate is slightly below consensus at $2.78 compared to the consensus estimate of $2.79 [5] - DRI shares were trading lower by 0.45% at $187.21 as of the latest check [5]

Core Viewpoint - Darden Restaurants, Inc. is set to report its third-quarter fiscal 2025 results on March 20, with expectations of improved earnings and revenue compared to the previous year [1][3]. Earnings Estimates - The Zacks Consensus Estimate for fiscal third-quarter earnings per share (EPS) is $2.81, reflecting a 7.3% increase from $2.62 in the same quarter last year [3]. - Revenue expectations are pegged at $3.21 billion, indicating a 7.9% rise from the prior year's figure [3]. Factors Influencing Performance - Darden's quarterly results are anticipated to benefit from strong same-restaurant sales growth, strategic pricing, and operational efficiencies [4]. - Menu innovation and value offerings are expected to drive customer traffic, alongside enhancements in digital ordering and loyalty programs [4]. Revenue Contributions - Core casual dining brands, particularly Olive Garden and LongHorn Steakhouse, are projected to contribute significantly to revenue, with expected increases of 3.4% to $1.4 billion and 7% to $0.8 billion, respectively [5]. - Fine dining revenue is expected to rise by 5.7% year over year to $0.4 billion [5]. Operational Enhancements - Improvements in supply chain optimization and technology-driven efficiencies are likely to enhance cost controls, contributing to margin expansion [6]. - Initiatives aimed at reducing food waste and optimizing kitchen operations are expected to support bottom-line growth, with adjusted EBITDA projected at $0.55 billion [6]. Cost Challenges - Darden faces macroeconomic challenges, including inflationary pressures and fluctuations in consumer discretionary spending [7]. - Food and beverage costs are predicted to rise by 8.2% to $1 billion, while labor costs are expected to increase by 6.1% to $1 billion [7]. Earnings Prediction Model - The current model does not predict an earnings beat for Darden, as the company has an Earnings ESP of -1.24% and a Zacks Rank of 3 [8].

Core Insights - Darden Restaurants Inc (NYSE:DRI) stock has recently increased by 0.9% to $187.70 after a pullback to its lowest level since January, following a record high of $203.12 on March 3 [1] - The stock has shown a nine-month lead of 22.2% and is approaching a trendline that historically yields bullish returns [1] - The stock is currently trading within one standard deviation of its 80-day moving average, a position that has historically led to gains [2] Performance Analysis - In the past three years, similar trading conditions have occurred six times, resulting in DRI being higher a month later 67% of the time, with an average gain of 4.1% [3] - If the stock follows this trend, it could rise above $195, nearing its all-time peak [3] Options Market Sentiment - The equity's 10-day call/put volume ratio stands at 16.87, which is higher than all annual readings, indicating a potential unwinding of pessimism in the options market [4]

Core Insights - Darden Restaurants (DRI) is expected to report quarterly earnings of $2.82 per share, reflecting a 7.6% increase year-over-year, with revenues projected at $3.21 billion, an 8% increase from the previous year [1] Earnings Estimates and Revisions - The consensus EPS estimate for the quarter has been adjusted upward by 0.1% over the past 30 days, indicating a reassessment by analysts [1][2] Sales Projections - Analysts project 'Sales- Olive Garden' to reach $1.36 billion, a year-over-year increase of 4% [4] - 'Sales- Other Business' is estimated at $689.74 million, showing a significant year-over-year change of 23% [4] - 'Sales- Fine Dining' is forecasted at $386.57 million, reflecting a 3.7% increase from the prior year [4] Company-Owned Restaurants Metrics - 'Sales- LongHorn Steakhouse' is expected to reach $783.13 million, indicating a 7.2% increase from the previous year [5] - The total number of 'Company-owned restaurants' is estimated to be 2,174, up from 2,022 in the same quarter last year [5] - 'Company-owned restaurants - Olive Garden' is projected at 930, compared to 917 in the same quarter last year [5] Additional Company-Owned Restaurants Estimates - 'Company-owned restaurants - LongHorn Steakhouse' is expected to be 584, up from 572 in the same quarter last year [6] - 'Company-owned restaurants - Bahama Breeze' is projected to remain at 43, consistent with the previous year [6] - 'Company-owned restaurants - Seasons 52' is expected to reach 45, slightly up from 44 last year [7] - 'Company-owned restaurants - Eddie V's' is projected to remain at 30, unchanged from the previous year [7] - 'Company-owned restaurants - Yard House' is expected to be 89, up from 88 last year [8] - 'Company-owned restaurants - Cheddar's Scratch Kitchen' is projected at 183, compared to 181 in the same quarter last year [8] Stock Performance - Darden Restaurants shares have decreased by 2.7% over the past month, while the Zacks S&P 500 composite has declined by 7.7% [8]

Company Performance - Darden Restaurants (DRI) has returned 4.9% year-to-date, outperforming the Retail-Wholesale sector average of 2.4% [4] - The Zacks Consensus Estimate for DRI's full-year earnings has increased by 0.5% over the past 90 days, indicating improving analyst sentiment [4] - Darden Restaurants holds a Zacks Rank of 2 (Buy), suggesting a favorable earnings outlook [3] Industry Comparison - Darden Restaurants is part of the Retail - Restaurants industry, which has 39 companies and is currently ranked 71 in the Zacks Industry Rank [6] - The average return for the Retail - Restaurants industry this year is 6.1%, indicating that DRI is slightly underperforming its industry [6] - In contrast, Hagerty, Inc. (HGTY), another stock in the Retail-Wholesale sector, has returned 3.7% year-to-date and has a Zacks Rank of 2 (Buy) [5]