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Darden Restaurants reported weaker-than-expected quarterly earnings and revenue as sales weakened at Olive Garden and its fine dining restaurants. CEO Rick Cardenas expressed confidence in the company’s long-term prospects despite falling short of expectations for the first quarter.
Shares of Darden rose about 10% in premarket trading following the results. Excluding Thursday’s gains, the stock has declined 3% this year amidst concerns about consumer health impacting the restaurant industry.
For the quarter ended Aug. 25, Darden reported earnings per share of $1.75 adjusted versus $1.83 expected, and revenue of $2.76 billion compared to $2.8 billion expected. Net income for the fiscal first quarter was $207.2 million, or $1.74 per share, up from $194.5 million a year earlier.
Olive Garden saw a decrease in same-store sales by 2.9%, prompting the chain to reintroduce its Never Ending Pasta Bowl promotion to attract customers. Darden’s fine dining segment reported same-store sales declines of 6%, while LongHorn Steakhouse saw growth of 3.7%.
Despite the challenging quarter, Darden reiterated its full-year outlook, forecasting earnings per share of $9.40 to $9.60 and net sales of $11.8 billion to $11.9 billion for fiscal 2025.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.
