Darden Restaurants (DRI) Q2 2025 earnings

Darden Restaurants on Thursday reported quarterly earnings and revenue that met analysts’ expectations and better-than-expected same-store sales growth at Olive Garden and LongHorn Steakhouse.

Shares of the company closed up 14% on Thursday.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $2.03 adjusted vs. $2.02 expected
• Revenue: $2.89 billion vs. $2.9 billion expected

Darden reported fiscal second-quarter net income of $215.1 million, or $1.82 per share, up from $212.1 million, or $1.76 per share, a year earlier.

Excluding costs related to its acquisition of Chuy’s, the restaurant company earned $2.03 per share.

Net sales rose 6% to $2.89 billion.

Darden’s same-store sales rose 2.4%, beating StreetAccount estimates of 1.5%.

“It looks like the consumer is starting to feel a little bit better than they were in prior quarters,” CEO Rick Cardenas said on the company’s conference call.

Customers with incomes between $50,000 and $100,000 are visiting Darden’s restaurants more frequently, although higher-income diners haven’t increased their visits.

Darden also saw “meaningful impacts” from hurricanes Helene and Milton, according to Cardenas. But only one restaurant, a Cheddar’s Scratch Kitchen in Asheville, North Carolina, has been unable to reopen. The restaurant is slated to open its doors again next year.

LongHorn Steakhouse reported same-store sales growth of 7.5%. The casual-dining chain has been a top performer in Darden’s portfolio in recent years, winning over customers with both the quality of its food and its prices. Wall Street was expecting the chain to report same-store sales growth of 4.1%.

Olive Garden, which accounts for more than 40% of Darden’s quarterly revenue, saw same-store sales growth of 2% in the quarter. Analysts were anticipating same-store sales growth of 1.4%, according to StreetAccount.

Olive Garden brought back its Never Ending Pasta Bowl promotion in the quarter; this time around, customers were more likely to spend more by adding a protein. The chain is also piloting Uber delivery at 100 of its restaurants, with the goal of rolling it out to the rest of the footprint after the holidays.

Darden’s fine-dining segment, which includes The Capital Grille and Ruth’s Chris Steak House, reported same-store sales declines of 5.8%, steeper than the 2.8% decrease expected by analysts. Fine-dining chains’ higher prices have scared away many consumers who are trying to spend less at restaurants.

The calendar shift of Thanksgiving from the company’s fiscal second quarter to the fiscal third quarter this year also hurt fine-dining sales, according to Darden CFO Raj Vennam. Excluding that impact, plus weaker sales tied to the hurricanes, the fine-dining segment’s same-store sales were down only 3.8%, an improvement from last quarter’s declines of 6%.

The company’s last remaining segment, which includes Cheddar’s Scratch Kitchen and Yard House, saw…