Darden Seeing Improvement After Mid-Summer Lull

Darden Restaurants saw revenue increase 1% to $2.8 billion in its fiscal first quarter ended in August, as the addition of 42 new restaurants offset a same-stores sales decline of 1.1%. “The significant step down in traffic during July led to our first quarter earnings being lower than expected,” said Darden CFO Raj Vennam. “Following the softness in July, our sales trend has continued to improve.”

In the first quarter, Darden saw its LongHorn Steakhouse brand grow same-store sales by 3.7%, but the fine dining unit—including Ruth’s Chris, Capital Grille, and Eddie V’s—declined 6% and Olive Garden was down 2.9%. The company is targeting sales of $11.8 to $11.9 billion for its full fiscal year, with same-store gains of 1%-2%. In addition to the brands above, the Darden portfolio also includes Yard House, Seasons 52, Bahama Breeze, The Capital Burger, and Cheddar’s Scratch Kitchen. —Daniel Marsteller

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