11:22 AM EDT, 03/20/2025 (MT Newswires) -- Darden Restaurants ( DRI ) fiscal third-quarter results rose year over year but revenue missed Wall Street projections while the Olive Garden ( DRI ) parent narrowed its full-year earnings guidance.

Revenue increased to $3.16 billion for the three months ended Feb. 23 from $2.97 billion a year ago, but missed the $3.21 billion average analyst estimate on FactSet. Same-store sales rose 0.7%, reflecting a gain of 2.6% at LongHorn Steakhouse and a 0.6% improvement at Olive Garden ( DRI ). The consensus was for same-store sales to rise by 1.6%.

Adjusted earnings per share advanced to $2.80 from $2.62 last year, matching Wall Street's expectations. Shares of Darden climbed 7.7% in Thursday trade.

"When you exclude weather impacts which were even greater than last year's challenging weather, same restaurant sales at all four of our segments were positive," Chief Executive Rick Cardenas said during an earnings call, according to a FactSet transcript. "Our ability to deliver profitable sales growth in this challenging environment is a testament to the strength of our business model."

Winter weather and a Thanksgiving holiday shift into the third quarter negatively impacted same-restaurant sales for the quarter by approximately 100 basis points and 90 basis points, respectively, Chief Financial Officer Raj Vennam said on the call.

For fiscal 2025, Darden now expects adjusted EPS to range between $9.45 and $9.52, compared with the previous guidance range of $9.40 to $9.60. The FactSet consensus is for non-GAAP EPS of $9.48. The restaurant giant continues to expect sales of roughly $12.1 billion in the ongoing year, compared with the $12.09 billion market view.

Olive Garden ( DRI ) completed its rollout of Uber's (UBER) direct delivery service during the third quarter, according to Cardenas. The volume of delivery orders grew week to week through the quarter while maintaining a higher check average than curbside pickup orders so far in the fiscal fourth quarter, he told analysts.

Darden is also testing new, smaller prototypes for some of its brands that have lower construction costs while unlocking locations that might have previously been considered too small, according to Cardenas.

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