Darden Restaurants Reports 1.4% Net Earnings Increase to $215.1 Million in Q2 Fiscal 2025

Darden Restaurants, Inc. reported a net earnings increase of 1.4% for the second quarter of fiscal 2025, reaching $215.1 million compared to $212.1 million in the same period last year. For the first six months, net earnings rose to $422.3 million from $406.6 million. The company’s total sales for the quarter were $2.89 billion, a 6.0% increase from $2.73 billion in the prior year, while sales for the first half of the fiscal year reached $5.65 billion, up 3.5% from $5.46 billion. The growth was attributed to the addition of 142 net new restaurants, including the acquisition of 103 Chuy’s locations, and a blended same-restaurant sales increase of 2.4% for the quarter.

In terms of operational metrics, Darden's total number of company-owned restaurants increased to 2,152 as of November 24, 2024, up from 2,031 at the end of the previous fiscal year. The Olive Garden segment reported sales of $1.29 billion for the quarter, a 3.3% increase, while LongHorn Steakhouse saw a significant 10.4% rise in sales to $710.1 million. However, the Fine Dining segment experienced a decline of 3.8% in sales, totaling $306 million. The company also reported a diluted net earnings per share of $1.82 for the quarter, up from $1.76 in the prior year.

Darden's financial position showed a notable increase in total assets, which rose to $12.52 billion from $11.32 billion at the end of the previous fiscal year. Current assets increased to $879.6 million, driven by higher inventories and prepaid expenses. However, current liabilities also rose to $2.40 billion, primarily due to an increase in short-term debt. The company’s long-term debt increased significantly to $2.12 billion, reflecting the financing of the Chuy’s acquisition through the issuance of senior notes.

Strategically, Darden completed the acquisition of Chuy’s Holdings on October 11, 2024, for $649.1 million, financed through the issuance of senior notes. The integration of Chuy’s is expected to enhance Darden's market presence and operational synergies. Additionally, the company has entered into a multi-year delivery agreement with Uber Technologies, which will facilitate on-demand delivery services across its restaurant brands. Looking ahead, Darden anticipates total sales for fiscal 2025 to be approximately $12.1 billion, with same-restaurant sales growth projected at around 1.5% and plans for 50 to 55 new restaurant openings.