Yesterday, the company reported that the second quarter adjusted earnings per share was $2.03, beating the street view of $2.02.
Looking ahead, Darden Restaurants said it now sees FY25 total sales of approximately $12.1 billion (prior outlook $11.8 billion - $11.9 billion). It reiterated diluted net earnings per share from continuing operations of $9.40 to $9.60.
Following the results, here are the analyst takes on the stock:
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BofA Securities: According to the analyst, Olive Garden's comps will stay positive in the second half of 2025, thanks to increased marketing efforts and potential growth from new channels like the upcoming Uber Technologies, Inc. rollout. The initial 100-store test shows that delivery order sizes are higher.
While Fine Dining continues to face challenges with a 3.8% decline in comparable sales (excluding timing shifts and weather factors), the analyst thinks this performance aligns with a return to previous trends for households with incomes under $150k, Senatore writes.
Goldman Sachs: The analyst projects Darden Restaurants to continue benefiting from its scale, the strength of the LongHorn brand, and subsegment diversification, but uncertainties remain around Olive Garden and Fine Dining traffic.
The Uber partnership is anticipated to bring increased advertising dollars to Darden Restaurants, though management has indicated they will not promote the delivery option until the full rollout in Olive Garden stores, expected by the fourth quarter of fiscal 2025 or the first quarter of fiscal 2026.