Darden Restaurants Stock Jumps 7% Despite Q1 Earnings Miss, Full-Year Outlook Reaffirmed

Darden Restaurants, Inc. (NYSE:DRI) reported its first-quarter results, falling short of analyst expectations but seeing a more than 7% rise in its stock price pre-market today as the company reaffirmed its full-year guidance and highlighted improving sales trends.

The company posted adjusted earnings per share of $1.75, missing the Street estimate of $1.84. Revenue reached $2.8 billion, just shy of the $2.81 billion forecast by analysts but still reflecting a 1% year-over-year increase.

Darden's overall sales growth was driven by the addition of 42 net new restaurants, which helped counterbalance a 1.1% decline in blended same-restaurant sales. Notably, LongHorn Steakhouse saw a 3.7% increase in same-restaurant sales, while Olive Garden experienced a 2.9% drop.

Despite the weaker-than-expected quarterly performance, Darden President & CEO Rick Cardenas expressed confidence in the company’s future, citing improved sales trends since a traffic slowdown in July.

Looking ahead, Darden reiterated its fiscal 2025 earnings outlook, projecting earnings per share in the range of $9.40 to $9.60, excluding potential impacts from the upcoming Chuy's acquisition.