Darden Restaurants (DRI) has reported mixed financial results for the fourth quarter of 2024 as
sales slump at its Olive Garden and LongHorn Steakhouse chains.
The Orlando, Florida-based company reported earnings per share (EPS) of $2.80 U.S., which was slightly ahead of the $2.79 U.S. expected among analysts.
However, revenue of $3.16 billion U.S. came in below Wall Street forecasts of $3.21 billion U.S. Overall sales were up 6.2% from a year ago, mostly due to the addition of Chuy’s restaurants, which it acquired last year.
Darden’s same-store sales rose only 0.7% during the final months of last year, much less than the 1.7% increase expected among analysts.
Both Olive Garden and LongHorn Steakhouse, which are typically Darden’s strongest restaurant chains, reported weak same-store sales growth.
Olive Garden’s same-store sales rose 0.6%, while LongHorn’s same-store sales came in at 2.6%. Both metrics were below analysts’ expectations.
Darden’s more expensive fine-dining segment, which includes The Capital Grille and Ruth’s Chris Steak House, reported same-store sales declines of 0.8% in the quarter.
The last segment of Darden’s business, which includes Cheddar’s Scratch Kitchen and Yard House, saw same-store sales fall 0.4% in the quarter.
Despite the poor Q4 2024 results, Darden maintained its previous sales forecast for the year, saying it still expects revenue of $12.10 billion U.S. in 2025.
However, Darden narrowed its outlook for earnings from continuing operations to a range of $9.45 U.S. to $9.52 U.S. per share.
Previously, the restaurant chain expected profits of $9.40 U.S. to $9.60 U.S. a share.
Darden’s stock has risen 8% over the last 12 months to trade at $188.15 U.S. per share.
