An Olive Garden restaurant in Milpitas, California, US, on Tuesday, Dec. 16, 2025.
David Paul Morris | Bloomberg | Getty Images
Darden Restaurants on Thursday reported strong sales growth, fueled by demand at Olive Garden and LongHorn Steakhouse.
For the second straight quarter, the company hiked its full-year outlook for revenue growth, although it only reiterated its projections for its earnings.
“The second quarter exceeded our top-line expectations as every segment delivered positive same-restaurant sales,” Darden CEO Rick Cardenas said in a statement.
Shares of the company rose more than 4% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $2.08 adjusted vs. $2.10 expected
- Revenue: $3.1 billion vs. $3.07 billion expected
Darden reported fiscal second-quarter net income of $237.2 million, or $2.03 per share, up from $215.1 million, or $1.82 per share, a year earlier.
Excluding restaurant closure costs and expenses related to its acquisition of Chuy’s, the restaurant company earned $2.08 per share.
Net sales rose 7.3% to $3.1 billion.
Darden’s same-store sales increased 4.3% in the quarter, topping Wall Street estimates of 3%, according to StreetAccount.
Olive Garden, which accounted for roughly 44% of Darden’s quarterly sales, reported same-store sales growth of 4.7%. The Italian chain’s popular Never Ending Pasta Bowl promotion ran during the quarter.
LongHorn Steakhouse saw same-store sales growth of 5.9%. While Olive Garden still outnumbers LongHorn based on its restaurant footprint, the steakhouse chain’s sales are growing faster.
The company’s other business segment reported same-store sales growth of 3.1%. The business unit includes Cheddar’s Scratch Kitchen and Yard House.
Darden’s fine-dining business, which includes Ruth’s Chris and The Capital Grille, saw same-store sales growth of 0.8%, bucking the malaise of the sector. The overall fine-dining segment has struggled as consumers spend less when dining out and many companies have cut back on business lunches and other expenses.
For fiscal 2026, Darden now expects total sales growth of 8.5% to 9.3%, up from its prior forecast of 7.5% to 8.5%. The fiscal year includes a 53rd week, which is expected to contribute about 2%. The company reiterated its forecast for adjusted earnings in a range of $10.50 to $10.70 per share.
This story is developing. Please check back for updates.
