.September 19, 2024, 09:36 AM

Darden Restaurants, Inc. (NYSE:DRI) reported first-quarter results below analyst expectations but saw a more than 7% rise in stock price pre-market. The company posted adjusted earnings per share of $1.75, missing the Street estimate of $1.84, with revenue reaching $2.8 billion, reflecting a 1% year-over-year increase.

Overall sales growth for Darden was driven by 42 net new restaurants, offsetting a 1.1% decline in blended same-restaurant sales. LongHorn Steakhouse saw a 3.7% increase in same-restaurant sales, while Olive Garden experienced a 2.9% drop.

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