Darden lifts annual sales forecast as diners seek affordable options

Reuters
2025/12/18
Darden lifts annual sales forecast as diners seek affordable options

Dec 18 (Reuters) - Darden Restaurants DRI.N raised its annual sales forecast on Thursday, betting on steady demand at its chains such as Olive Garden as its price restraint helps attract customers.

Shares of the parent of LongHorn Steakhouse rose about 5% in premarket trading after it also topped second-quarter sales expectations.

Darden, which runs full-service brands including Ruth's Chris Steak House, Cheddar's Scratch Kitchen and Yard House, has absorbed tariff-related cost pressure instead of raising prices as diners stay selective about restaurant spending.

The company now expects same-restaurant sales in fiscal 2026 to rise between 3.5% and 4.3%, up from its prior forecast of 2.5% to 3.5%.

Darden has fared better than other players such as McDonald's MCD.N and Mediterranean salad-bowl maker Cava CAVA.N during a tougher economic backdrop, even as higher beef costs have squeezed margins across the space.

The company reaffirmed its annual earnings per share forecast in the range of $10.50 to $10.70.

To drive demand, Darden expanded delivery through a partnership with Uber Direct, extended its "never-ending pasta bowl" promotion and added new menu items.

Same-store sales at its flagship Olive Garden rose 4.7% in the quarter, while LongHorn Steakhouse posted a 5.9% increase, fueled by menu innovation and value-focused promotions aimed at middle-income diners.

Overall same-store sales increased 4.3% in the second quarter, beating analysts' estimates for a 2.9% rise, according to data compiled by LSEG.

Darden posted earnings per share of $2.08 from continuing operations for the quarter ended November 23, compared with analysts' estimate of $2.10.

(Reporting by Sanskriti Shekhar and Savyata Mishra in Bengaluru; Editing by Tasim Zahid)

((Sanskriti.Shekhar@thomsonreuters.com))

免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。

热议股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10