Darden posts upbeat quarter on casual dining demand

Published: 2025-06-20 14:51:14 ET DRI

Published on 06/20/2025 at 14:51

STORY: Shares of Darden Restaurants rose more than two percent to another all-time high Friday morning after it forecast annual same-store sales above estimates and posted strong quarterly results.

The owner of Olive Garden and other chains is banking on demand driven by food delivery and advertising.

The company also announced a new $1 billion share repurchase program and revealed plans to explore strategic alternatives for its Bahama Breeze brand.

This move comes as the company, similar to other consumer-facing firms, looks to offload underperforming segments.

CEO Rick Cardenas said on a call after the earnings release that consumers are willing to spend their hard-earned money on casual dining, and quote, "we think we're taking some wallet share from fast food and fast casual (restaurants)."

Initiatives such as home deliveries with the help of Uber Direct and "buy one, take one" offerings at Olive Garden have further helped the restaurant chain operator.

Profit in the previous quarter topped estimates due to moderate price hikes and lower input costs.

However, Darden forecast annual earnings per share below estimates.