Darden Restaurants Updates FY25 Financial Outlook

(RTTNews) - Darden Restaurants, Inc. (DRI) updated its full year financial outlook for fiscal 2025 which includes Chuy's operating results, but excludes approximately $47 million, pre-tax, of expected transaction and integration related costs associated with the acquisition. The company now expects fiscal 2025 adjusted net earnings per share from continuing operations of $9.45 to $9.52. Previously, the company anticipated 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.

For fiscal 2025, the company expects: total sales of approximately $12.1 billion; same-restaurant sales growth of approximately 1.5%; and new restaurant openings of 50 to 55.

For the third quarter, the company's earnings came in at $323.4 million, or $2.74 per share. This compares with $312.9 million, or $2.60 per share, last year. Excluding $0.06 of Chuy's transaction and integration related costs, third quarter adjusted net earnings per share from continuing operations were $2.80, an increase of 6.9% from a year ago. Analysts on average had expected the company to earn $2.79 per share. Analysts' estimates typically exclude special items. Total sales increased 6.2% to $3.2 billion, driven by a blended same-restaurant sales increase of 0.7% and sales from the acquisition of 103 Chuy's restaurants and 40 net new restaurants.

Darden's Board declared a quarterly cash dividend of $1.40 per share on outstanding common stock. The dividend is payable on May 1, 2025 to shareholders of record at the close of business on April 10, 2025.

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