Darden Restaurants(US:DRI) Prnewswire·2025-03-20 11:00Core Insights - Darden Restaurants, Inc. reported a solid financial performance for the third quarter of fiscal 2025, with total sales reaching $3.158 billion, a 6.2% increase compared to the same quarter last year [2][8]. Financial Performance - Total sales increased to $3.158 billion from $2.975 billion year-over-year, driven by a blended same-restaurant sales increase of 0.7% and contributions from the acquisition of 103 Chuy's restaurants and 40 net new restaurants [2][8]. - Reported diluted net earnings per share from continuing operations were $2.74, while adjusted diluted net earnings per share, excluding Chuy's transaction costs, were $2.80, reflecting a 6.9% increase [8][14]. - Year-to-date sales for fiscal 2025 reached $8.805 billion, up from $8.433 billion in the previous year [4]. Segment Performance - Olive Garden generated sales of $1.330 billion, with a segment profit of $306.6 million, while LongHorn Steakhouse reported sales of $768.1 million and a segment profit of $149.3 million [4]. - Fine Dining segment sales were $385.3 million with a profit of $86.1 million, and the Other Business segment, which includes Chuy's, reported sales of $674.3 million and a profit of $104.0 million [4][3]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $1.40 per share, payable on May 1, 2025 [5]. - During the quarter, the company repurchased approximately 0.3 million shares for a total of $53 million, with $548 million remaining under the current $1 billion repurchase authorization [6] [8]. Financial Outlook - The company updated its full-year financial outlook for fiscal 2025, including Chuy's operating results but excluding approximately $47 million in expected transaction and integration costs [7][9]. - The anticipated total sales for fiscal 2025 are approximately $12.1 billion, with same-restaurant sales growth projected at around 1.5% [9]. Operational Metrics - The company operated 2,165 restaurants as of February 23, 2025, compared to 2,022 a year earlier, reflecting growth in its restaurant portfolio [16]. - Total capital spending for the year is expected to be approximately $650 million, with new restaurant openings projected between 50 to 55 [9]. Cash Flow and Financial Position - Net cash provided by operating activities for the nine months ended February 23, 2025, was $1.250 billion, compared to $1.196 billion in the prior year [20]. - Total assets increased to $12.561 billion from $11.323 billion year-over-year, with total liabilities also rising to $10.358 billion [19].