Business
Olive Garden owner Darden Restaurants hikes revenue outlook as value plays help bring in diners
An Olive Garden restaurant in Milpitas, California, US, on Tuesday, Dec. 16, 2025.
David Paul Morris | Bloomberg | Getty Images
Darden Restaurants on Thursday reported strong sales growth, fueled by demand at Olive Garden and LongHorn Steakhouse as thrifty diners look for good deals.
For the second straight quarter, the company hiked its full-year outlook for revenue growth, although it only reiterated its projections for its earnings.
“The second quarter exceeded our top-line expectations as every segment delivered positive same-restaurant sales,” Darden CEO Rick Cardenas said in a statement.
Shares of the company rose nearly 3% in morning trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $2.08 adjusted vs. $2.10 expected
- Revenue: $3.1 billion vs. $3.07 billion expected
Darden reported fiscal second-quarter net income of $237.2 million, or $2.03 per share, up from $215.1 million, or $1.82 per share, a year earlier.
Higher ingredient costs, particularly for near-record prices for beef, weighed on the company’s restaurant-level margin, CFO Raj Vennam said on the company’s conference call.
Excluding restaurant closure costs and expenses related to its acquisition of Chuy’s, the restaurant company earned $2.08 per share.
Net sales rose 7.3% to $3.1 billion.
Darden’s same-store sales increased 4.3% in the quarter, topping Wall Street estimates of 3%, according to StreetAccount.
While the broader restaurant industry has seen sluggish sales growth, Darden has found success by raising its menu prices by less than inflation and adding promotions aimed at diners looking for value.
“Weaker consumer sentiment doesn’t necessarily translate into reduced spending during the quarter,” Cardenas said during the conference call.
He said the company saw high-income consumers trade into its casual-dining chains, although demand from diners making less than $50,000 fell slightly. Darden also got a traffic bump from consumers who are at least 55 years old.
Restaurant results
Olive Garden, which accounted for roughly 44% of Darden’s quarterly sales, reported same-store sales growth of 4.7%. Executives credited the popularity of the Italian chain’s $13.99 Never Ending Pasta Bowl promotion that ran during the quarter, plus Olive Garden’s growing delivery business.
In an appeal to inflation-weary consumers, Olive Garden is also adding the option of smaller portions at a lower price for select menu items. Cardenas said the change is improving its value perception among some diners. About 40% of the chain’s locations offered the lighter portions menu during the quarter, and another 20% added it early in the fiscal third quarter.
LongHorn Steakhouse saw same-store sales growth of 5.9%. While Olive Garden still outnumbers LongHorn based on its restaurant footprint, the steakhouse chain’s sales are growing faster.
Cardenas said LongHorn saw higher traffic from consumers who make less than $50,000, despite the chain’s higher average check relative to Olive Garden. He credited higher beef prices, which mean that a steak at LongHorn could be the same price or cheaper than buying one from the grocery store.
The company’s other business segment reported same-store sales growth of 3.1%, fueled by strong demand at Yard House, according to Cardenas.
Darden’s fine-dining business, which includes Ruth’s Chris and The Capital Grille, saw same-store sales growth of 0.8%, bucking the malaise of the sector.
The broader fine-dining segment has struggled as consumers spend less when dining out and many companies have cut back on business lunches and other expenses. Darden tried to appeal to those budget-conscious diners by bringing back a deal at Ruth’s Chris for a three-course meal priced at $55 per person.
“It’s a profitable deal for us,” Cardenas said.
For fiscal 2026, Darden now expects total sales growth of 8.5% to 9.3%, up from its prior forecast of 7.5% to 8.5%. The fiscal year includes a 53rd week, which is expected to contribute about 2%.
Darden also adjusted its expectations for inflation to 3.5%, on the high end of its prior range of 3% to 3.5%. Higher costs will weigh on the company’s margins, leading the company to reiterate its forecast for adjusted earnings in a range of $10.50 to $10.70 per share.
Business
Without Rera data, real estate reform risks losing credibility: Homebuyers’ body – The Times of India
New Delhi: More than 75% of state real estate regulators, Reras, have either never published annual reports, discontinued their publication or not updated them despite statutory obligation and directions from the housing and urban affairs ministry, claimed homebuyers’ body FPCE on Friday. It released status report of 21 Reras as of Feb 13.The availability of updated annual reports is crucial as these contain details of data on performance of Reras, including project completion status categorised by timely completion, completion with extensions, and incomplete projects. The ministry’s format for publishing these reports also specifies providing details such as actual execution status of refund, possession and compensation orders as well as recovery warrant execution details with values and list of defaulting builders.FPCE said annual report data is not only vital for homebuyers to assess system credibility, but is equally necessary for both state and central govts to frame effective policies, design incentivisation schemes, and develop tax policy frameworks.“Unless we have credible data proving that after Rera the real estate sector has improved in terms of delivery, fairness, and keeping its promises, we are merely firing in the air,” said FPCE president Abhay Upadhyay, who is also a member of the govt’s Central Advisory Council on Rera.As per details shared by the entity, seven states — Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Himachal Pradesh and Goa — have never published a single annual report since Rera’s implementation, and nine states, including Maharashtra, Uttar Pradesh and Telangana, which initially published reports, have discontinued the practice.Upadhyay said when regulators themselves don’t follow the law, they lose the legal right to demand compliance from other stakeholders. “Their failure emboldens builders and weakens the very system they are meant to safeguard,” he said.
Last Updated:
Over recent quarters, payouts had gradually improved from roughly 65 percent to 80 percent and now to an average of about 85 percent in Q3FY26.
Infosys logo is seen.
IT major Infosys rolled out performance bonus payouts averaging around 85 percent for the quarter ended December 31, 2025 (Q3FY26), marking the strongest variable pay outcome for eligible employees in at least the past three-and-a-half years, Moneycontrol reported citing people in the know.
The bonus payout for mid- to junior-level employees ranges between 75 percent and 100 percent, with most employees clustering around the organisation-wide average of 85 percent, the report said. The development signals a steady recovery in variable compensation at the Bengaluru-headquartered IT services firm. Over recent quarters, payouts had gradually improved from roughly 65 percent to 80 percent and now to an average of about 85 percent in Q3FY26.
Employees are expected to receive their bonus letters over the next few days, with the payout scheduled to be credited along with their February salary.
One employee told the outlet that it is the strongest bonus outcome seen in recent years. The payout is also among the rare instances since the Covid-19 period when variable pay has approached the upper end of the eligible range.
Infosys last paid out 100 percent variable compensation during the pandemic. In the quarters that followed, payouts were lower amid macroeconomic uncertainty and a broader slowdown in client spending across global markets.
The higher payout comes at a time when global IT stocks have faced renewed pressure, driven by concerns over rapid advances in artificial intelligence and their potential impact on traditional IT services models.
Shares of global IT firms have seen sharp sell-offs in recent weeks amid heightened investor focus on AI leaders such as Anthropic. Investors fear that generative AI tools could compress pricing, automate routine services work and reduce demand for legacy outsourcing models.
Against that backdrop, the improved bonus payout at Infosys is being viewed as a signal of operational resilience and near-term performance strength, even as sentiment around the broader IT sector remains cautious.
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February 13, 2026, 21:44 IST
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