Darden Restaurants, Inc. (NYSE:DRI) is one of the tech and consumer sector stocks that Jim Cramer talked about. Cramer called it one of the “retail winners,” as he stated: “Retail’s such a huge portion of this economy, it can mask the questionable kinds of transactions we’ve been seeing at the highest level of tech. Consider the retail winners today. There’s Darden, that’s the owner of Olive Garden. It vaulted nearly 2%. Yes, the numbers from Olive Garden look great.” Olive Garden Darden Image: Courtes ...

Core Insights - Darden Restaurants reported a revenue increase of 6.2% year over year in Q3 fiscal 2025, reaching $3.16 billion, although it fell short of analysts' expectations of $3.21 billion [1][3] - Adjusted EPS for the quarter was $2.80, reflecting a 6.9% increase year over year, which met analysts' expectations [1][3] Revenue and Performance - The revenue growth was supported by the acquisition of Chuy's Tex-Mex restaurant chain and the opening of 40 new restaurants in the past year [2][6] - Same-restaurant sales growth was recorded at 0.7%, with LongHorn Steakhouse achieving a 2.6% increase, while Olive Garden saw a modest 0.6% growth [6] Business Overview - Darden operates over 2,165 restaurant locations, including brands like Olive Garden and LongHorn Steakhouse, focusing on brand diversity to cater to various customer segments [4] - The company emphasizes operational efficiency and market penetration through targeted restaurant openings and acquisitions [4][5] Strategic Focus - Darden's current strategy includes integrating new acquisitions and optimizing existing operations for cost efficiency, with plans for 50 to 55 new restaurant openings this fiscal year [5][10] - The company has reduced advertising spend compared to pre-pandemic levels, indicating a shift towards operational efficiency [7] Financial Highlights - Total sales for Q3 2025 reached $3.158 billion, with notable sales during events like Valentine's Day [6][7] - Darden executed significant share repurchases amounting to $53 million, reflecting confidence in its financial position [8] Future Outlook - Management anticipates a modest increase in same-restaurant sales of approximately 1.5% and full-year sales of $12.1 billion [9] - Adjusted EPS guidance for the fiscal year is projected between $9.45 to $9.52, considering transaction-related costs [10]