Despite weak fine-dining sales, Darden beats on earnings.

• Darden Restaurants reported mixed quarterly results for its fiscal fourth quarter.
• Although Ruth's Chris Steak House acquisition led to a 6.8% increase in net sales, the company fell short of Wall Street's revenue estimates for the quarter.
• The restaurant company reported flat same-store sales growth.

Olive Garden reported mixed quarterly results with a decline in same-store sales for the second consecutive quarter on Thursday.

In fiscal 2025, Darden anticipates a 1% to 2% increase in its same-store sales.

Shares of the company rose more than 1% in premarket trading.

Based on a survey of analysts by LSEG, the company's reported results for the quarter ended May 26 differed from Wall Street's expectations.

• Earnings per share: $2.65 adjusted vs. $2.61 expected
• Revenue: $2.96 billion vs. $2.97 billion expected

Darden's net income for the fiscal fourth quarter was $308.1 million, which amounts to $2.57 per share, a decrease from the previous year's $315.1 million, or $2.58 per share.

The company's earnings per share, excluding costs related to the Ruth's Chris acquisition and other items, were $2.65.

The acquisition of Ruth's Chris Steak House and 37 other net new locations contributed to a 6.8% increase in net sales, which totaled $2.96 billion.

Darden expects to earn between $9.40 and $9.60 per share from continuing operations in fiscal 2025, which is in line with Wall Street's forecast of $9.55 per share. The company anticipates net sales of $11.8 billion to $11.9 billion in the same year, which is below analysts' expectations of $11.94 billion.

Darden anticipates a growth of 1% to 2% in same-store sales for fiscal 2025, along with an inflation rate of 3%. The company intends to invest between $550 million and $600 million in capital expenditures.