Darden Restaurants, Inc. (NYSE: DRI) is a prominent American restaurant operator owning several well-known dining brands including Olive Garden, LongHorn Steakhouse, and Cheddar’s Scratch Kitchen, among others. The company reported its financial results for the third quarter of fiscal year 2025, revealing a stable condition with notable growth metrics.

For the third quarter ended February 23, 2025, Darden achieved total sales of $3.2 billion, reflecting a 6.2% increase compared to the previous fiscal year. The blended same-restaurant sales rose by 0.7%, driven by the acquisition of 103 Chuy’s restaurants and the addition of 40 new restaurants. Adjusted diluted net earnings per share from continuing operations were $2.80, a 6.9% growth from the previous year’s $2.62. Net earnings from continuing operations were reported at $323.7 million, compared to $313.4 million for the same quarter last year.

The sales growth for each segment varied; Olive Garden recorded a total sales increase of 1.5% with same-restaurant sales up 0.6%. LongHorn Steakhouse also saw a sales increase of 5.1% supported by a same-restaurant sales growth of 2.6%. However, the Fine Dining segment faced challenges with total sales increasing by 3.3% but a same-restaurant sales decline of 0.8%. The Other Business segment, which includes Chuy’s, reported a 20.2% sales growth benefiting from the acquisition.

The company generated an adjusted EBITDA of $559 million for the quarter. Restaurant level EBITDA was reported at 21.1%, a 50 basis points increase year-over-year. Darden returned substantial value to shareholders, repurchasing $53 million worth of stock and distributing $164 million in dividends.

Looking ahead to the fiscal year 2025, Darden updated its guidance forecasting total sales to be approximately $12.1 billion, alongside full-year same-restaurant sales growth of approximately 1.5%. The company anticipates opening between 50 to 55 new restaurants with a total capital spending estimate of approximately $650 million. Darden’s effective tax rate is expected to remain around 12.5% with an overall inflation rate projected at approximately 2.5% for the year.

As of the end of the fiscal third quarter, the company had approximately 118.3 million weighted average diluted shares outstanding and provided diluted net earnings per share guidance in the range of $9.45 to $9.52, excluding transaction and integration-related costs of around $47 million.