Darden Restaurants Reports Strong Fiscal Q3 Growth with Chuy's Acquisition

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Darden Restaurants, Inc. (NYSE: DRI) reported a 6.2% increase in total sales for its fiscal 2025 third quarter, reaching $3.2 billion. This growth was driven by a blended same-restaurant sales increase of 0.7%, the acquisition of 103 Chuy's restaurants, and the addition of 40 net new restaurants.

Same-restaurant sales performance varied across Darden's segments:

  • Olive Garden: 0.6% increase
  • LongHorn Steakhouse: 2.6% increase
  • Fine Dining: 0.8% decrease
  • Other Business: 0.4% decrease

Reported diluted net earnings per share (EPS) from continuing operations were $2.74. Excluding $0.06 related to Chuy's transaction and integration costs, the adjusted diluted EPS was $2.80, marking a 6.9% increase. During the quarter, Darden repurchased $53 million of its outstanding common stock.

The 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.

Darden updated its full-year financial outlook for fiscal 2025, projecting total sales of approximately $12.1 billion and adjusted diluted net earnings per share from continuing operations between $9.45 and $9.52.

On October 11, 2024, Darden completed the acquisition of Chuy's Holdings, Inc. for approximately $605 million. Chuy's, founded in Austin, Texas, in 1982, operates over 100 restaurants across 15 states, offering authentic, made-from-scratch Tex-Mex inspired dishes. This acquisition expanded Darden's portfolio, which includes brands like Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House.

Following the earnings announcement, Darden's stock experienced a 5.9% increase, reflecting investor confidence in the company's performance and strategic direction.

Darden's positive financial results and strategic acquisitions indicate resilience in the casual dining sector amid economic challenges. The company's expansion and consistent performance suggest a stable job market within its operations, potentially contributing to economic stability in the regions where it operates.

Darden's strategic growth through acquisitions and steady same-restaurant sales demonstrate its resilience and strong position in the casual dining industry.

Tags: #darden restaurants, #chuy's acquisition, #fiscal growth, #casual dining, #financial results

Sources

  1. Darden Restaurants Inc. - Darden Restaurants Reports Fiscal 2025 Third Quarter Results; Declares Quarterly Dividend; And Updates Fiscal 2025 Financial Outlook
  2. Darden Restaurants Inc. - Darden Restaurants Completes Acquisition of Chuy's Holdings, Inc.
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