In this articleDRI your favorite stocksCREATE FREE ACCOUNTThe exterior of an O Garden is seen on June 20, 2025 in Austin, Texas.
Brandon Bell | Getty ImagesDarden Restaurants on Thursday reported mixed quarterly results, as O Garden and LongHorn Steakhouse helped offset weakness in its fine-dining .The company also raised its full-year forecast for revenue growth, although it only reiterated its jections for its earnings.
s of the company fell more than 9% in morning trading.Here's what the company reported for the quarter Aug.
24 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earnings per : $1.97 adjusted vs.
$2 expectedRevenue: $3.04 billion, in line with expectationsDarden reported fiscal first-quarter net income of $257.8 million, or $2.19 per , up from $207.2 million, or $1.74 per , a year earlier.Excluding gains related to the sale of its Canadian O Garden restaurants, costs from restaurant closures and other items, the company earned $1.97 per .Net sales climbed 10.4% to $3.04 billion, lifted by the company's acquisition of Chuy's Tex Mex restaurants that was last October.Darden's same-store sales rose 4.7% in the quarter.
The metric, which tracks results for stores open at least a year, does not include Chuy's restaurants yet.
It also does not include its Bahama Breeze locations, because the company expects to divest the chain before the end of the fiscal year."All our casual dining brands saw an increase in visits year-over-year from guests across all income groups, but specifically those in higher-income groups," Darden CEO Rick Cardenas said on the company's earnings conference call.
"You would expect that could have been some trade down, but it could be trade up from lower-income groups to the great value in casual dining."In recent quarters, the casual-dining segment has won over diners by moting value offerings as prices at fast-casual and fast-food restaurants climb.
To attract price-conscious customers, Darden has kept its price hikes below the rate of inflation across its brands.
CFO Raj Vennam said the company's prices were 30 basis points, or 0.3%, below inflation in the fiscal first quarter.O Garden, the gem of Darden's portfolio, reported same-store sales growth of 5.9%.
The Italian-inspired chain accounts for more than 40% of the company's overall revenue.
Executives credited marketing initiatives, the Never-Ending Pasta Bowl and first-party dery through its recent partnership with Uber.
Dery customers order more frequently than dine-in customers, according to Cardenas.LongHorn Steakhouse saw its same-store sales increase 5.5% in the quarter, boosted by a 3.2% jump in customer traffic.
Even as beef prices spike, Darden executives have pledged to keep LongHorn's price increases below the rate of inflation, betting that diners will stick with the chain for its value.The company's other segment, which includes Cheddar's Scratch Kitchen and Yard House, reported same-store sales growth of 3.3%.Even Darden's fine-dining , which has struggled in recent quarters, reported same-store sales declines of just 0.2%.
Wall Street was jecting a steeper same-store sales decrease of 0.9%."I think we're seeing a little bit more drop off in the travel that's leading to some weekday weakness," Vennam said Darden's fine-dining restaurants.For fiscal 2026, Darden is jecting revenue growth of 7.5% to 8.5%, up from its prior forecast of 7% to 8% growth.
The company reiterated its forecast for adjusted earnings in a range of $10.50 to $10.70 per .Don’t miss these insights from CNBC Nobel winner Joseph Stiglitz has a warning for bond investorsAs traditional 60/40 portfolios get riskier, BlackRock says investors should rethink their allocationsGoldman adds Walmart to September 'conviction list.' Here's who else made the cutNvidia retail buyers are getting exhausted