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ORLANDO, Fla. - Darden Restaurants, Inc. (NYSE:DRI), the $22 billion market cap parent company of Olive Garden and LongHorn Steakhouse, among others, announced a 6.2% increase in total sales to $3.2 billion for its third fiscal quarter ending February 23, 2025, compared to the same period last year. According to InvestingPro analysis, the company is currently trading above its Fair Value, with a P/E ratio of 21.6x. The rise was attributed to a blended same-restaurant sales increase of 0.7% and revenue from newly acquired Chuy’s restaurants, along with 40 net new restaurant openings.
The company’s diluted net earnings per share from continuing operations were reported at $2.74. After adjusting for $0.06 per share related to Chuy’s transaction and integration costs, the adjusted diluted net earnings per share increased by 6.9% to $2.80.
Darden’s Board of Directors declared a quarterly cash dividend of $1.40 per share, payable on May 1, 2025, to shareholders of record as of April 10, 2025. During the quarter, Darden repurchased approximately 0.3 million shares of its common stock for a total of $53 million, leaving $548 million available under its current $1 billion share repurchase authorization.
For the full fiscal year 2025, Darden updated its financial outlook, projecting total sales of approximately $12.1 billion, same-restaurant sales growth of around 1.5%, and the opening of 50 to 55 new restaurants. The company anticipates total capital spending of about $650 million, with total inflation estimated at 2.5%, and an effective tax rate of approximately 12.5%. The adjusted diluted net earnings per share from continuing operations are expected to be between $9.45 and $9.52, excluding Chuy’s transaction and integration related costs.
The financial results reflect Darden’s continued growth trajectory and strategic expansion through acquisitions and new openings. The company’s performance also indicates a resilient business model, as noted by Darden President & CEO Rick Cardenas, who commended the team’s ability to manage business and control costs effectively in a challenging environment.
The information in this article is based on a press release statement from Darden Restaurants, Inc.
In other recent news, Darden Restaurants has been the focus of several analyst reports and corporate updates. Truist Securities has raised its price target for Darden Restaurants to $212, maintaining a Buy rating, citing an acceleration in same-store sales and a positive outlook on upcoming promotions. Meanwhile, Stifel analysts have reiterated a Buy rating with a $205 price target, acknowledging mixed same-restaurant sales but expressing concern over potential impacts from weakening consumer confidence. KeyBanc Capital Markets maintained an Overweight rating with a $200 price target, adjusting earnings expectations due to anticipated shortfalls in Olive Garden’s performance but noting LongHorn Steakhouse’s consistency. Additionally, Darden Restaurants announced the retirement of board member Nana Mensah, with no immediate plans for a successor. These developments highlight the company’s strategic initiatives and ongoing adjustments to market conditions. Despite challenges, analysts like KeyBanc’s Eric Gonzalez believe in Darden’s ability to maintain its market position. Investors are advised to keep an eye on further announcements from Darden as it navigates these changes.
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