LongHorn Steakhouse sales grew 7.5%, while fine dining saw a 5.8% decline in same-restaurant performance in Q2 of fiscal 2025. Credit: Jonathan Weiss/Shutterstock.

US-based restaurant operator Darden Restaurants has reported a 6% increase in total sales to $2.9bn for the second quarter (Q2) ended 24 November 2024.

This growth has been attributed to a 2.4% rise in blended same-restaurant sales and the addition of 103 Chuy’s restaurants, along with 39 net new restaurants. In July 2024, the company agreed to acquire Chuy’s Holdings in a $605m deal.

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The company’s same-restaurant sales witnessed mixed results, with LongHorn Steakhouse leading the growth at 7.5%, while fine dining experienced a decline of 5.8%.

Olive Garden and LongHorn Steakhouse are the major contributors to Darden’s revenue, with Olive Garden generating $1.29bn in sales and LongHorn Steakhouse $710.1m for the quarter.

Segment profit for these brands also saw an increase, with Olive Garden at $277.1m and LongHorn Steakhouse at $134.2m.

Darden president and CEO Rick Cardenas said: “We had a strong quarter and I am pleased that our four largest brands – Olive Garden, LongHorn Steakhouse, Yard House and Cheddar’s Scratch Kitchen – generated positive same-restaurant sales, as did three of our four business segments.

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“I continue to believe in the power of our strategy and our brands’ ability to compete effectively regardless of the environment. Each of our brand leadership teams is focused on the long term and staying committed to executing at the highest level.”

The reported diluted net earnings per share from continuing operations stood at $1.82. After adjusting for $0.21 of Chuy’s transaction and integration-related costs, the adjusted diluted net earnings per share from continuing operations increased by 10.3% to $2.03.

Darden also returned value to shareholders by repurchasing $142m of its outstanding common stock. Year-to-date consolidated Darden sales reached $5.64bn.

The other business segment, which now includes Chuy’s, reported a sales increase to $581.4m for the quarter and $1.13bn year-to-date, with corresponding segment profits also on the rise.

Darden’s board of directors has declared a quarterly cash dividend of $1.4 per share, payable on 3 February 2025 to shareholders on record as of 10 January 2025.

The company has updated its full-year financial forecast for fiscal 2025 and now shows projected total sales of $12.1bn.

It anticipates same-restaurant sales growth of 1.5% and plans to open between 50 and 55 new locations within 12 months.

Capital spending is expected to be $650m, with total inflation of 2.5% and an effective tax rate of 12.5%. Excluding Chuy’s transaction and integration costs, diluted net earnings per share from continuing operations are projected to be between $9.4 and $9.6.