Darden Restaurants Inc
DRI
$177.72 0.83%
Exchange: NYSE | Sector: Consumer Cyclical | Industry: Restaurants
Q2 2025
Published: Jan 2, 2025

Earnings Highlights

  • Revenue of $2.89B down 2.9% year-over-year
  • EPS of $1.82 decreased by 29.8% from previous year
  • Gross margin of 21.2%
  • Net income of 215.10M
  • ""In October, Olive Garden launched its Uber Direct pilot in approximately 100 restaurants. They are not promoting it yet in order to focus on the technology integration and operational execution."" - Rick Cardenas
DRI
Company DRI

Executive Summary

Darden’s QQ2 2025 results reflect solid operating momentum across its four largest brands, driven by continued value-led strategies, operating discipline, and a favorable mix shift. Total sales reached $2.89 billion, up 6% year over year, aided by same-restaurant sales growth of 2.4% (including a ~90 basis point benefit from Thanksgiving timing) and the acquisition of 103 Chuy’s restaurants, plus net 39 new units. Adjusted diluted earnings per share from continuing operations were $2.03, 10% higher than last year, and adjusted EBITDA was $445 million. The Olive Garden and LongHorn segments delivered the strongest performance, with Olive Garden reporting 3.3% total sales growth and a 21.4% segment EBITDA margin, while LongHorn posted 7.5% comparable restaurant sales growth and an 18.9% segment EBITDA margin. The company closed the Chuy’s deal in October and is actively integrating it on a multi-year path toward run-rate synergies of roughly $17 million (with about $2 million realized in fiscal 2025 and the remainder in 2026). Management emphasized a back-half bias in growth due to the Thanksgiving shift into Q3, with anticipation of continued optimization of the portfolio via menu and pricing actions, and a continued emphasis on speed, data insights, and technology (including a next-generation POS) to sustain margins and guest satisfaction. For 2025, Darden updated guidance to approximately $12.1 billion in total sales, ~1.5% same-restaurant sales growth, 50–55 new restaurants, ~650 million in capital expenditures, ~2.5% total inflation (commodities ~1%), an ~12.5% tax rate, ~118 million weighted-average diluted shares, and EPS of $9.40–$9.60. The outlook assumes the Chuy’s integration is neutral to Adjusted EPS for the year (excluding transaction/business costs) with expected $17 million in run-rate synergies; the company also highlighted Q3–Q4 cadence given the holiday shift and ongoing promotions across the portfolio.

Key Performance Indicators

Revenue
Decreasing
2.89B
QoQ: 4.82% | YoY: -2.85%
Gross Profit
Increasing
612.70M
21.20% margin
QoQ: 8.87% | YoY: 16.11%
Operating Income
Decreasing
292.10M
QoQ: 8.51% | YoY: -24.68%
Net Income
Decreasing
215.10M
QoQ: 3.81% | YoY: -31.26%
EPS
Decreasing
1.84
QoQ: 5.14% | YoY: -29.77%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 3,044.70 2.19 +3.0% View
Q3 2025 3,158.00 2.74 +6.8% View
Q2 2025 2,890.00 1.82 -2.9% View
Q1 2025 2,757.00 1.74 +1.1% View
Q4 2024 2,957.30 2.57 +8.3% View