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Olive Garden owner Darden Restaurants disappoints on earnings but hikes sales outlook
CNBCยท 2025-09-18 11:27
Core Insights - Darden Restaurants reported mixed quarterly results, with Olive Garden and LongHorn Steakhouse performing well, offsetting weaknesses in the fine-dining segment [1] - The company raised its full-year revenue growth forecast while maintaining its earnings projections, leading to a 6% drop in shares during premarket trading [1] Financial Performance - Darden's fiscal first-quarter net income was $257.8 million, or $2.19 per share, an increase from $207.2 million, or $1.74 per share, year-over-year [2] - Adjusted earnings per share, excluding certain gains and costs, were $1.97, slightly below the expected $2 [5] Sales and Growth Metrics - Net sales increased by 10.4% to $3.04 billion, driven by the acquisition of Chuy's Tex Mex restaurants [3] - Same-store sales rose by 4.7% in the quarter, not including Chuy's or Bahama Breeze locations, which are expected to be divested [3] Future Projections - For fiscal 2026, Darden projects revenue growth of 7.5% to 8.5%, an increase from the previous forecast of 7% to 8% [4] - The company reiterated its adjusted earnings forecast in the range of $10.50 to $10.70 per share [4]