Dec 18 (Reuters) - Darden Restaurants ( DRI ) raised its

annual sales forecast on Thursday, betting on steady demand at

its chains such as Olive Garden ( DRI ) as its price restraint helps

attract customers.

Shares of the parent of LongHorn Steakhouse rose about 5% in

premarket trading after it also topped second-quarter sales

expectations.

Darden, which runs full-service brands including Ruth's

Chris Steak House, Cheddar's Scratch Kitchen and Yard House, has

absorbed tariff-related cost pressure instead of raising prices

as diners stay selective about restaurant spending.

The company now expects same-restaurant sales in fiscal 2026

to rise between 3.5% and 4.3%, up from its prior forecast of

2.5% to 3.5%.

Darden has fared better than other players such as

McDonald's and Mediterranean salad-bowl maker Cava ( CAVA )

during a tougher economic backdrop, even as higher

beef

costs have squeezed margins across the space.

The company reaffirmed its annual earnings per share

forecast in the range of $10.50 to $10.70.

To drive demand, Darden expanded delivery through a

partnership with Uber Direct, extended its "never-ending pasta

bowl" promotion and added new menu items.

Same-store sales at its flagship Olive Garden ( DRI ) rose 4.7% in

the quarter, while LongHorn Steakhouse posted a 5.9% increase,

fueled by menu innovation and value-focused promotions aimed at

middle-income diners.

Overall same-store sales increased 4.3% in the second

quarter, beating analysts' estimates for a 2.9% rise, according

to data compiled by LSEG.

Darden posted earnings per share of $2.08 from

continuing operations for the quarter ended November 23,

compared with analysts' estimate of $2.10.