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Darden Restaurants reported robust results for its fiscal third quarter ended Feb. 22, with companywide sales rising 5.9% to $3.3 billion and consolidated same-store sales up 4.2% across its 11 brands.
LongHorn Steakhouse led the portfolio with 7.2% same-store sales growth, while flagship Olive Garden posted 3.2% comps but saw traffic dip 0.4%. Management attributed Olive Gardenâs sales mix to a combination of a newly rolled-out lighter-portion menu (items under $15), stronger catering growth and expanding delivery via Uber Eats (now ~4.7% of orders). Winter storms in January and February subtracted roughly 100 basis points from same-restaurant sales and intermittently forced closures of as many as 40% of restaurants.
Darden said Olive Garden added net 17 restaurants during the year, finishing the quarter with 944 units, and raised its companywide same-store sales outlook to about 4.5% for the fiscal year.
While LongHornâs momentum was partly offset by higher beef costs that pressured margins, Darden highlighted strong employee retention and operational execution as drivers of its outperformance versus the broader industry.
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Restaurant News | Restaurant DiveCourtesy of Maggiano's Little Italy
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