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Nov 24, 2024

Darden Q2 2025 Earnings Report

Darden's financial performance for Q2 2025 was reported, highlighted by a 6.0% increase in total sales and adjusted diluted net earnings per share from continuing operations up by 10.3%.

Key Takeaways

Darden Restaurants reported a strong second quarter with total sales increasing by 6.0% to $2.9 billion, driven by a blended same-restaurant sales increase of 2.4%. Adjusted diluted net earnings per share from continuing operations increased by 10.3% to $2.03.

Total sales increased by 6.0% to $2.9 billion.

Blended same-restaurant sales increased by 2.4%.

Adjusted diluted net earnings per share from continuing operations were $2.03, a 10.3% increase.

The company repurchased $142 million of its outstanding common stock.

Total Revenue
$2.89B
Previous year: $2.73B
+6.0%
EPS
$2.03
Previous year: $1.84
+10.3%
Olive Garden same-store sales
2%
Previous year: 4.1%
-51.2%
LongHorn same-store sales
7.5%
Previous year: 4.9%
+53.1%
Fine Dining same-store sales
-5.8%
Previous year: -1.7%
+241.2%
Gross Profit
$2.02B
Previous year: $550M
+266.6%
Cash and Equivalents
$217M
Previous year: $220M
-1.2%
Free Cash Flow
$225M
Previous year: $185M
+21.7%
Total Assets
$12.5B
Previous year: $11.3B
+10.6%

Darden

Darden

Darden Revenue by Segment

Forward Guidance

The Company updated its full year financial outlook for fiscal 2025 which now includes Chuy's operating results, but excludes approximately $47 million, pre-tax, of expected transaction and integration related costs associated with the acquisition.

Positive Outlook

  • Total sales of approximately $12.1 billion
  • Same-restaurant sales growth of approximately 1.5%
  • New restaurant openings of 50 to 55
  • An effective tax rate of approximately 12.5%
  • Diluted net earnings per share from continuing operations of $9.40 to $9.60, excluding approximately $47 million, pre-tax, of Chuy's transaction and integration related costs

Challenges Ahead

  • Total capital spending of approximately $650 million
  • Total inflation of approximately 2.5%
  • Approximately 118 million weighted average diluted shares outstanding

Revenue & Expenses

Visualization of income flow from segment revenue to net income