Darden Restaurants Reports Mixed Results but Boosts Investor Confidence

Revenue and same-store sales fell short of expectations, but strong future guidance and optimism about consumer spending lifted stock prices.

Darden Restaurants reported fiscal third-quarter revenue of $3.16 billion, missing the $3.21 billion expected by analysts, despite a 6.2% year-over-year increase driven by the acquisition of Chuy's.
Same-store sales rose 0.7%, falling short of the 1.7% analysts had projected, with Olive Garden and LongHorn Steakhouse underperforming expectations.
The fine-dining segment, including The Capital Grille and Ruth's Chris Steak House, posted a 0.8% decline in same-store sales, reflecting continued softness in higher-end dining.
CEO Rick Cardenas expressed optimism about future consumer spending, citing rising incomes outpacing inflation as a positive driver for dining out.
Darden maintained its full-year revenue forecast of $12.1 billion and projected 3% same-store sales growth for the next quarter, leading to a 5% increase in its stock price.