Darden Restaurants, Inc. (NYSE:DRI) stock rose 0.10% (As on December 20, 11:08:52 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 25. The same-restaurant sales advanced 2.4% year-over-year, while it also benefited from the addition of 39 net new restaurants and its acquisition of 103 Chuy’s restaurants on Oct. 11. Also noteworthy is that the same-restaurant sales of its LongHorn chain climbed 7.5% YOY.

DRI in the second quarter of FY 25 has reported the adjusted earnings per share of $2.03, beating the analysts’ estimates for the adjusted earnings per share of $2.02. The company had reported the adjusted revenue growth of 6 percent to $2.9 billion in the second quarter of FY 25, beating the analysts’ estimates for revenue by $20 million. This is driven by solid same-store growth in the central brands of Longhorn Steakhouse and Olive Garden. Comparable fine dining revenues slipped 5.8% lower as consumers backed away from pricey dinners in this challenging economy. The recent acquisition of Tex-Mex fast-casual chain Chuy’s made a small contribution to Darden’s revenues. The deal closed about midway through the second quarter.

Additionally, the company has declared a quarterly cash dividend of $1.40 per share on the Company’s outstanding common stock. The dividend is payable on February 3, 2025 to shareholders of record at the close of business on January 10, 2025. During the quarter, the Company repurchased approximately 0.9 million shares of its common stock for a total of $142 million. As of the end of the fiscal second quarter, the Company had $601 million remaining under the current $1 billion repurchase authorization.

Looking ahead, Darden set up a revenue target of roughly $12.1 billion in fiscal year 2025. Inspired by a smooth integration of Chuy’s 103 locations, this guidance point stands 1.2% above the current analyst consensus. For fiscal year 2025, the company expects Same-restaurant sales growth to be of approximately 1.5%, New restaurant openings to be of 50 to 55, total capital spending of approximately $650 million, total inflation of approximately to be 2.5%, An effective tax rate of approximately 12.5% and diluted net earnings per share from continuing operations of $9.40 to $9.60, excluding approximately $47 million, pre-tax, of Chuy’s transaction and integration related costs.