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4mo ago

Olive Garden and LongHorn Steakhouse Drive Darden's Strong Q2 Performance

Darden Restaurants reports robust sales growth at its casual dining chains, offsetting declines in fine dining and boosting its stock to a yearly high.

Overview

  • Darden Restaurants saw a 6% increase in total sales for Q2 2025, reaching $2.89 billion, with adjusted earnings per share of $2.03, slightly surpassing expectations.
  • LongHorn Steakhouse led the portfolio with a 7.5% rise in same-store sales, driven by consistent pricing and value-focused offerings that appealed to budget-conscious diners.
  • Olive Garden posted a 2% increase in same-store sales, exceeding analysts' forecasts, supported by an extended 'Never Ending Pasta Bowl' promotion and a pilot delivery partnership with Uber.
  • The fine dining segment, including Ruth’s Chris Steak House and The Capital Grille, experienced a 5.8% decline in same-store sales as higher prices deterred consumers seeking more affordable dining options.
  • Darden raised its full-year sales outlook to $12.1 billion and saw its stock surge by 14%, making it one of the top performers on the S&P 500 for the day.