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Darden Restaurants Inc. (DRI+2.73%) has submitted its 10-Q filing for the quarterly period ended February 23, 2025.
The filing includes financial statements for the quarter, showing an increase in sales to $3.16 billion from $2.97 billion in the same quarter the previous year. This increase is attributed to sales from 143 net new restaurants, including the acquisition of 103 Chuy’s restaurants.
Net earnings from continuing operations were reported at $323.7 million for the quarter, compared to $313.4 million in the previous year. The company also reported diluted net earnings per share from continuing operations of $2.74, up from $2.60.
Operating income for the quarter was $418.2 million, an increase from $387.4 million in the previous year. The company attributed this to higher sales and effective cost management.
Interest expense increased to $45.5 million from $36.5 million, primarily due to financing related to the Chuy’s acquisition.
Darden Restaurants reported an effective income tax rate for continuing operations of 13.1% for the quarter, compared to 10.7% in the previous year.
The company highlighted its acquisition of Chuy’s Holdings, Inc., completed on October 11, 2024, for a total consideration of $649.1 million. The acquisition was financed through the issuance of senior notes.
Darden also announced a new multi-year delivery arrangement with Uber Technologies, Inc., which was rolled out to nearly all Olive Garden locations during the second and third quarters of fiscal 2025.
The company expects sales for fiscal 2025 to be approximately $12.1 billion, with same-restaurant sales growth of approximately 1.5% and plans for 50 to 55 new restaurant openings.
Darden Restaurants continues to focus on expanding its restaurant portfolio, managing costs, and leveraging strategic partnerships to drive growth and profitability.
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 April 1, 2025. To report an error, please email earnings@qz.com.