Darden Restaurants: More Dollars On The Plate (Rating Upgrade)
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Darden Restaurants reported a strong Q2 performance, with a 15% stock surge due to a $20M revenue beat and a $0.01 EPS beat. Growth was driven by the acquisition of 103 Chuy's restaurants and a 2.4% increase in same-restaurant sales, notably LongHorn Steakhouse's 10.4% YoY growth. Margins improved with reduced expenses, leading to a 70bps increase in restaurant-level EBITDA.

December 20, 2024 | 7:00 pm
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POSITIVE IMPACT
Darden Restaurants' stock surged 15% following a strong Q2 performance, with a $20M revenue beat and a $0.01 EPS beat. Key growth drivers include the acquisition of 103 Chuy's restaurants and a 2.4% increase in same-restaurant sales, particularly LongHorn Steakhouse's 10.4% YoY growth. Improved margins due to reduced expenses led to a 70bps increase in restaurant-level EBITDA.
Darden Restaurants' strong Q2 results, including a revenue and EPS beat, acquisition of Chuy's restaurants, and significant growth in LongHorn Steakhouse sales, have positively impacted its stock price. Improved margins further support the positive outlook.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100