How did Darden Hotel's revenue and expenses trend in Q3 2025?
4/14/2025 11:47am
Darden Restaurants Inc. (DRI) exhibited a notable increase in revenue and a slight rise in expenses during Q3 2025, reflecting a solid operational performance despite facing some challenges in specific segments.
1. **Revenue Trend**: The company's total sales surged by 6.2%, reaching $3.2 billion. This growth was primarily driven by a 0.7% rise in same-restaurant sales and contributions from new acquisitions, particularly the addition of 103 Chuy's locations. Specifically, Olive Garden contributed to the growth, with a 0.6% increase in same-restaurant sales, while LongHorn Steakhouse saw a more significant rise of 2.6% in same-restaurant sales. However, the Fine Dining segment experienced a slight decline of 0.8% in same-restaurant sales.
|code|Ticker|Name|Date|Selling, General, and Administrative Expenses|Cost of Goods Sold|Depreciation and Amortization|Total Revenue|market_code|
|---|---|---|---|---|---|---|---|---|
|DRI|DRI.N|Darden Restaurants|2024 Q4|2.599E8|2.3006E9||2.9573E9|169|
|DRI|DRI.N|Darden Restaurants|2025 Q1|2.926E8|2.1942E9||2.757E9|169|
|DRI|DRI.N|Darden Restaurants|2025 Q2|3.206E8|2.2773E9||2.89E9|169|
|DRI|DRI.N|Darden Restaurants|2025 Q3|2.84E8|2.4557E9||3.158E9|169|
2. **Expense Trend**: The company's cost management was effective, as evidenced by the slight increase in Selling, General, and Administrative (SG&A) expenses, which would be expected to support the growth in revenue. However, the specifics of these expenses are not detailed in the available data.
3. **Profitability**: Darden's adjusted diluted EPS rose by 6.9% to $2.80, meeting the estimated EPS of $2.80. This profitability indicator suggests that despite the slight decline in certain segments, the company was able to maintain strong earnings due to effective cost management and strategic acquisitions.
4. **Shareholder Value**: Darden continued to return value to shareholders, with a reported share repurchase of $53 million worth of common stock, leaving $548 million remaining under the current authorization. Additionally, the company declared a quarterly dividend of $1.40 per share, reflecting a commitment to shareholder returns.
In conclusion, Darden Restaurants Inc. demonstrated robust growth in revenue and effective cost management in Q3 2025, contributing to a solid earnings performance. However, the decline in certain segments, such as Fine Dining, suggests the need for strategic adjustments to maintain overall performance momentum.