Darden Restaurant Inc.'s shares soared 15% Thursday as it reported better-than-expected same-store sales for the fiscal second quarter, driven by Olive Garden and LongHorn Steakhouse.
The Orlando-based company, which operates more than 2,100 restaurants around the world, said net sales rose 6% to $2.9 billion, beating analysts expectations by $20 million.
Same-store sales rose 2.4% from last year, fueled by the acquisition of 103 Chuy's restaurants and 39 net new restaurants.
Darden Restaurants, the parent company of Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen and Seasons 52, said Olive Garden's sales were up 2% over last year's and LongHorn Steakhouse's were up 7.5%.
It reported earnings of $2.03 per share matching analysts expectations.
As a result, the company raised its outlook for fiscal year 2025 to $12.1 billion.
"We had a strong quarter and I am pleased that our four largest brands – Olive Garden, LongHorn Steakhouse, Yard House and Cheddar's Scratch Kitchen – generated positive same-restaurant sales, as did three of our four business segments," Darden President and CEO Rick Cardenas said in a statement.
"I continue to believe in the power of our strategy and our brands' ability to compete effectively regardless of the environment. Each of our brand leadership teams are focused on the long term and staying committed to executing at the highest level," he said.
