Financial Data and Key Metrics Changes - Total sales for the second quarter reached $3.1 billion, a 7% increase compared to the previous year, driven by same restaurant sales growth of 4.3% and the addition of 30 net new restaurants [13][17] - Adjusted diluted net earnings per share from continuing operations were $2.08, up 2.5% from last year [15] - Adjusted EBITDA for the quarter was $466 million, with an adjusted effective tax rate of 13.2% [15][17] Business Line Data and Key Metrics Changes - Olive Garden reported a 5.4% increase in total sales, with same restaurant sales growth of 4.7% and a strong segment profit margin of 21.8% [17][18] - LongHorn Steakhouse achieved a 9.3% increase in total sales, driven by same restaurant sales growth of 5.9% and a segment profit margin of 16.2% [18] - The fine dining segment saw a 3.3% increase in total sales, with a segment profit margin of 14.8%, impacted by high beef costs [19] Market Data and Key Metrics Changes - Average same restaurant sales for the casual dining industry grew 1.3%, while guest counts decreased by 0.4% [3] - Darden's same restaurant sales exceeded the industry benchmark by 300 basis points, with performance in the top decile of the industry [14][17] Company Strategy and Development Direction - The company plans to open 65-70 new restaurants in fiscal 2026, with total capital spending projected between $750 million and $775 million [20] - Darden continues to leverage its competitive advantages, including scale and a diverse portfolio, to manage costs and provide value to guests [4][24] - The company is focusing on long-term growth through strategic investments and maintaining a disciplined approach to capital stewardship [24][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged commodity headwinds, particularly high beef prices, but emphasized a commitment to underpricing inflation to provide value to guests [13][21] - The company expects total sales growth for the year to be between 8.5% and 9.3%, with same restaurant sales growth of 3.5% to 4.3% [20] - Management remains confident in the ability to grow sales and manage costs despite near-term margin pressures [21] Other Important Information - The company opened 17 new restaurants during the quarter, contributing to a total of 30 net new openings for the year [5] - The lighter portion menu at Olive Garden has seen a double-digit increase in affordability perceptions among guests, with plans for a system-wide rollout by January [8][17] Q&A Session Summary Question: Impact of the lighter portions menu on sales - Management indicated that while the lighter portions menu impacts internal metrics like value perception, it is expected to drive higher frequency among guests ordering these items [28][30] Question: Labor margin challenges despite sales growth - Management explained that labor margins improved in comparable restaurants, but total Darden level margins were affected by brand mix and the acquisition of Chuy's [31][32] Question: Olive Garden's same-store sales guidance - Management anticipates same-restaurant sales growth in the back half of the year to be around 2.5% to 4%, factoring in potential consumer spending benefits from fiscal stimulus [35][36] Question: Pricing strategy in relation to inflation - Management expects pricing to catch up to inflation by the fourth quarter, with a modest increase anticipated at LongHorn [38][39] Question: Consumer behavior and traffic trends - Management noted that higher income households are driving traffic growth, while there has been a slight pullback in lower income segments [49][50] Question: Marketing strategy for Uber Direct - Management did not conduct marketing for Uber Direct in Q2 but plans to evaluate marketing efforts in the back half of the year [81][82]