Saturday, December 21, 2024

Olive Garden Owner Poised To Rebound On Earnings, Outlook

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Shares of Darden Restaurants rebounded strongly early Thursday after the Olive Garden owner’s Q2 results and 2025 beat expectations.

Darden Restaurants (DRI), which also operates Longhorn Steakhouse, Ruth’s Chris Steak House, Bahama Breeze, Chuy’s and others, reported a 10.3% increase in earnings to $2.03 per share adjusted.





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Total sales rose 6% to $2.89 billion. FactSet expected earnings of $2.02 per share on $2.87 billion in revenue.

Darden Restaurants’ consolidated same-store sales rose 2.4%, outpacing views for 1.5% growth. Longhorn Steakhouse led Darden’s portfolio with a 7.5% increase in same-store sales. The company’s fine dining establishments saw same-restaurant sales decline 5.8%. However, the fine dining segment included Ruth Chris for the month of November only.

Darden guided 2025 sales to $12.1 billion, up from $11.39 billion last year and ahead of FactSet expectations for $11.97 billion.

The company sees 2025 earnings ranging from $9.40 to $9.60 per share, growing from $8.88 per share. Analysts predict earnings increase to $9.42 per share.

Darden’s same-store restaurant outlook for 1.5% growth for the year also beat views for a 1% increase.

Darden Restaurants Stock

DRI stock rallied 14.7% ehursday. Darden on the move took back Wednesday’s 3.4% drop, which cut below the stock’s 50-day moving average in heavy trade, a sell signal.

DRI stock is now up 11.7% on the year through Thursday’s close.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

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