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Darden Restaurants Inc. (DRI+0.27%) has submitted its 10-Q filing for the quarterly period ended November 24, 2024.
The filing reports total sales of $2.89 billion for the second quarter of fiscal 2025, an increase from $2.73 billion in the same quarter of the previous year. The increase is attributed to sales from 142 net new restaurants, including the acquisition of Chuy's Holdings.
Net earnings from continuing operations for the quarter were $215.7 million, compared to $212.3 million in the previous year. Diluted net earnings per share from continuing operations were $1.82, up from $1.76.
Darden's acquisition of Chuy's Holdings was completed on October 11, 2024, for $649.1 million. The acquisition was financed with proceeds from the issuance of senior notes.
Operating income for the quarter was $292.1 million, up from $278.5 million in the previous year. The increase in operating income was driven by higher sales and cost management.
The company's effective tax rate for the quarter was 12.3%, slightly higher than the 12.1% in the previous year, primarily due to nondeductible transaction costs related to the Chuy's acquisition.
Segment results showed an increase in profit margins for Olive Garden and LongHorn Steakhouse, while Fine Dining experienced a decrease. The Other Business segment, which includes Chuy's, showed an increase in profit margin.
The company expects fiscal 2025 sales to reach approximately $12.1 billion, with same-restaurant sales growth of approximately 1.5% and 50 to 55 new restaurant openings.
Darden's liquidity remains strong, with net cash provided by operating activities from continuing operations increasing to $661.8 million for the first six months of fiscal 2025, compared to $609.9 million in the previous year.
The filing also details the company's financing activities, including the issuance of senior notes to finance the Chuy's acquisition and the maintenance of a revolving credit agreement.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Darden Restaurants Inc. quarterly 10-Q report dated January 2, 2025. To report an error, please email earnings@qz.com.