Earnings Per Share (EPS) of $2.80 met analysts’ expectations, with a net income increase to $323.4 million.
Revenue of approximately $3.16 billion fell short of the estimated $3.21 billion, reflecting challenges in same-restaurant sales performance.
Same-store sales growth was only 0.7%, missing the anticipated 1.7% increase, contributing to a nearly 1% drop in Darden’s shares during premarket trading.
Darden Restaurants, Inc. (NYSE:DRI) is a prominent player in the restaurant industry, known for its popular chains like Olive Garden and LongHorn Steakhouse. The company operates a diverse portfolio of dining brands, catering to a wide range of customer preferences. Darden competes with other major restaurant groups, striving to maintain its market position through strategic growth and customer loyalty.
On March 20, 2025, DRI reported earnings per share (EPS) of $2.80, aligning with analysts’ expectations. The company’s revenue for the quarter was approximately $3.16 billion, slightly below the estimated $3.21 billion. Despite meeting EPS expectations, Darden’s revenue fell short, reflecting challenges in same-restaurant sales performance.
Darden’s fiscal 2025 third-quarter results highlighted a net income increase to $323.4 million, or $2.74 per share, up from $312.9 million, or $2.60 per share, the previous year. Excluding acquisition costs related to Chuy’s, EPS was $2.80. This indicates a stable profit performance, even as revenue growth faced hurdles.
The company’s same-store sales growth was only 0.7%, missing the anticipated 1.7% increase. Olive Garden and LongHorn Steakhouse, typically strong performers, reported disappointing same-store sales growth, with Olive Garden’s sales rising just 0.6%. This underperformance contributed to a nearly 1% drop in Darden’s shares during premarket trading.
Despite these challenges, Darden’s total sales and segment profit margins experienced growth, with several brands achieving record sales during the holiday season and Valentine’s Day. This underscores the strength of Darden’s business model and strategy, as emphasized by CEO Rick Cardenas. The company also declared a quarterly dividend and updated its financial outlook for fiscal 2025.
