Darden Restaurants 10-Q Report Reveals 6.0% Increase in Total Sales

By Bobby Samwell • Friday, January 03 06:03 • Permanent Link

Darden Restaurants, Inc. has recently released its 10-Q report, revealing a 6.0% increase in total sales to $2.89 billion for the second quarter of fiscal 2025. The company operates under various brand names including Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen. The report also details the number of company-owned restaurants open at the end of the second quarter of fiscal 2025, totaling 2,152.

In the second quarter of fiscal 2025, Darden Restaurants reported net earnings from continuing operations of $215.7 million, a 1.6% increase from the same period in fiscal 2024. Diluted net earnings per share from continuing operations were $1.82, up 3.4% from the previous year. The company's outlook for fiscal 2025 includes sales expectations of approximately $12.1 billion, same-restaurant sales growth of approximately 1.5%, and the opening of approximately 50 to 55 new restaurants.

The report also provides a breakdown of sales by segment, showing increases in sales for Olive Garden, LongHorn Steakhouse, and Other Business, while Fine Dining experienced a decrease. Additionally, the report details the costs and expenses as a percentage of sales for the periods indicated, highlighting changes in food and beverage costs, restaurant labor costs, and marketing expenses.

Net interest expense increased as a percentage of sales for the second quarter and the first six months of fiscal 2025 primarily due to financing related to the Chuy’s acquisition. The effective income tax rate for continuing operations for the quarter and the first six months of fiscal 2025 was 12.3% and 11.4%, respectively.

On an after-tax basis, losses from discontinued operations for the second quarter and first six months of fiscal 2025 were $0.6 million and $1.0 million, compared with losses from discontinued operations for the same periods in fiscal 2024 of $0.2 million and $0.5 million.

The market has reacted to these announcements by moving the company's shares -0.1% to a price of $186.51. Check out the company's full 10-Q submission here.

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