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Key Takeaways
- Darden Eating places shares jumped Thursday as its second-quarter gross sales got here in higher than anticipated, powered by LongHorn Steakhouse outcomes.
- The corporate's adjusted revenue additionally beat estimates.
- The chain lifted its full-year income outlook following the robust quarter.
Shares of Darden Eating places (DRI) surged 14% Thursday to guide S&P 500 gainers as the corporate’s fiscal 2025 second-quarter gross sales and adjusted revenue beat expectations on robust LongHorn Steakhouse outcomes.
Darden—which operates LongHorn, Olive Backyard, Ruth’s Chris, and different restaurant chains—recorded web revenue of $215.1 million, or $1.82 per share, on income of $2.89 billion. In response to estimates compiled by Seen Alpha, analysts anticipated revenue of $239.5 million, or $2.02 per share, on income of $2.86 billion.
Darden reported adjusted earnings per share (EPS) of $2.03, two cents above expectation.
LongHorn Growth Driving Sales
Identical-restaurant gross sales surged 7.5% year-over-year at LongHorn, nicely above the 4.3% progress analysts anticipated. Olive Backyard same-restaurant gross sales additionally rose greater than anticipated at 2%, however its tremendous eating operations declined 5.8%, almost double the three% drop analysts anticipated.
LongHorn’s efficiency has been robust all year long. Executives have mentioned that buyers have been prepared to spend on issues like a steakhouse meal after they really feel they’re getting their cash’s value.
Darden up to date its fiscal 2025 outlook, lifting its income projection to about $12.1 billion from the prior vary of $11.8 billion to $11.9 billion. The corporate is anticipating same-restaurant gross sales progress of 1.5% on the yr, narrowed from 1% to 2%, whereas holding its earnings per share (EPS) from persevering with operations outlook at $9.40 to $9.60.
With immediately's positive aspects, Darden shares moved into constructive territory for the yr.
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