10:41 AM EST, 12/19/2024 (MT Newswires) -- Darden Restaurants ( DRI ) lifted its full-year revenue outlook on Thursday as the restaurant operator recorded better-than-expected fiscal second-quarter results.

The parent company of Olive Garden ( DRI ) and LongHorn Steakhouse now anticipates revenue of about $12.1 billion for fiscal 2025, up from its previous projections of $11.8 billion to $11.9 billion. Same-restaurant sales are pegged to grow by roughly 1.5%, compared with the prior guidance range of a 1% to 2% increase.

The current consensus on FactSet is for revenue of $11.97 billion and same-store sales growth of 1% for the fiscal year. The stock advanced 14% in Thursday trading.

Darden continues to forecast per-share earnings of $9.40 and $9.60 for the ongoing fiscal year, excluding about $47 million, pre-tax, of transaction and integration costs related to its acquisition of Tex-Mex restaurant chain Chuy's completed in October. The Street is looking for adjusted EPS of $9.42. The company also plans to open 50 to 55 new restaurants this fiscal year, up from its previous target of 45 to 50 restaurants.

Adjusted earnings came in at $2.03 a share for the quarter ended Nov. 24, up from $1.84 a year earlier, topping the Street's view for $2.02. The figure excluded transaction and integration costs of $0.21 a share related to the Chuy's deal. Sales rose 6% year over year to $2.89 billion, ahead of analysts' $2.87 billion estimate, buoyed in part by the addition of 103 Chuy's restaurants and 39 net new restaurants.

Same-restaurant sales inclined 2.4% for the quarter, more than the market consensus for a 1.5% increase. Same-restaurant sales gained 2% for Olive Garden ( DRI ) and climbed 7.5% at LongHorn Steakhouse. The fine dining segment fell 5.8%.

"The Thanksgiving shift to the third quarter this year caused a sales benefit for the casual dining brands, and a headwind for our fine dining brands in the second quarter," Chief Financial Officer Rajesh Vennam said during an earnings call, according to a FactSet transcript. "However, even when adjusting for the benefit of the Thanksgiving holiday shift at our four largest brands, same-restaurant sales were still positive."

For the back half of the fiscal year, Darden expects sales and EPS growth rates to be lower in the third quarter than the subsequent three-month period, due to the impact of the Thanksgiving holiday shifting into the third quarter, Vennam said on the call.

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