The shares of Darden Restaurants (DRI) are surging around 15% today after the company reported stronger-than-expected fiscal second-quarter results this morning.
Darden owns a number of restaurant chains, including Olive Garden and LongHorn Steakhouse.
Darden’s top line climbed 6% versus the same period a year earlier to $2.9 billion, coming in $20 million above analysts’ average estimate. Additionally, its 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.
CFO Raj Vennam reported that the company’s same-restaurant sales growth was 1.4 percentage points above that of the sector.
The company’s adjusted earnings per share rose 10% YOY to $2.03, versus analysts’ average estimate of $2.02.
CEO Rick Cardenas noted on the company’s earnings call that LongHorn’s performance had exceeded Darden’s expectations due to “great guest value and strong operational execution.” He added that Olive Garden’s performance had been boosted by its unlimited pasta offering, while the response of customers to the return of the chain’s Steak Gorgonzola and Stuffed Chicken Marsala dishes has been “encouraging” Cardenas reported that the company would begin advertising these offerings in January.
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Disclosure: None. This article is originally published at Insider Monkey.