Darden Restaurants, Inc. recently reported its financial results for the second quarter and declared a quarterly dividend.
Darden’s Board of Directors declared a quarterly cash dividend of $1.40 per share on the Company’s outstanding common stock. The dividend is payable on February 3, 2025 to shareholders of record at the close of business on January 10, 2025.
For the Second Quarter 2025 financial highlights which ended November 24, 2024, here are comparisons versus same fiscal quarter last year:
- Total sales increased 6.0% to $2.9 billion, driven by a blended same-restaurant sales* increase of 2.4% and sales from the addition of 103 Chuy’s restaurants and 39 net new restaurants
- Same-restaurant sales:
- Olive Garden 2.0%
- LongHorn Steakhouse 7.5%
- Fine Dining (5.8)%
- Other Business 0.7%
- Reported diluted net earnings per share from continuing operations were $1.82
- Excluding $0.21 of Chuy’s transaction and integration related costs, adjusted diluted net earnings per share from continuing operations were $2.03, an increase of 10.3%
- The Company repurchased $142 million of its outstanding common stock
“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,” said Darden President & CEO Rick Cardenas. “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 are focused on the long term and staying committed to executing at the highest level.”
During the quarter, the Company repurchased approximately 0.9 million shares of its common stock for a total of $142 million. As of the end of the fiscal second quarter, the Company had $601 million remaining under the current $1 billion repurchase authorization.
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.
- Total sales of approximately $12.1 billion
- Same-restaurant sales growth of approximately 1.5%*
- New restaurant openings of 50 to 55
- Total capital spending of approximately $650 million
- Total inflation of approximately 2.5%
- 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**
- Approximately 118 million weighted average diluted shares outstanding
Darden Restaurants is headquartered in Orlando, Florida.
