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Feb 23
Darden Q3 2025 Earnings Report
Darden reported solid Q3 2025 results with revenue growth driven by same-restaurant sales and contributions from acquisitions.
Key Takeaways
Darden Restaurants reported Q3 2025 revenue of $3.16 billion, with net income of $323.7 million and EPS of $2.74. Adjusted EPS reached $2.80, a 6.9% increase year-over-year. The company's performance was bolstered by strong holiday and Valentine’s Day sales across several brands.
Total revenue increased 6.2% to $3.16 billion.
Net income totaled $323.7 million, up from $313.4 million last year.
EPS was $2.74, with adjusted EPS of $2.80, a 6.9% year-over-year increase.
Olive Garden and LongHorn Steakhouse showed positive same-restaurant sales growth.
Darden
Darden
Darden Revenue by Segment
Revenue by Segment
Olive Garden Revenue
CapyFin.comLongHorn Steakhouse Revenue
CapyFin.comFine Dining Revenue
CapyFin.comOther Business Revenue
CapyFin.com Forward Guidance
Darden updated its fiscal 2025 outlook, expecting continued growth in sales and earnings supported by strategic acquisitions and robust consumer demand.
Positive Outlook
- Total fiscal 2025 sales expected to be approximately $12.1 billion.
- Same-restaurant sales growth anticipated at around 1.5%.
- 50 to 55 new restaurant openings planned for the year.
- Effective tax rate forecasted at approximately 12.5%.
- Adjusted EPS expected in the range of $9.45 to $9.52.
Challenges Ahead
- Transaction and integration costs from Chuy's acquisition to continue impacting results.
- Potential inflationary pressures projected at approximately 2.5%.
- Ongoing macroeconomic challenges could affect consumer spending.
- Competitive pressures in the restaurant industry remain intense.
- Seasonal headwinds could affect fine dining and other discretionary segments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income