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Olive Garden owner Darden Restaurants hikes revenue outlook as value plays help bring in diners

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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.



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At 6.7%, IIP growth hits over 2-year high – The Times of India

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At 6.7%, IIP growth hits over 2-year high – The Times of India


NEW DELHI: Industrial output growth surged to a 25-month high in Nov, led by a rebound in manufacturing and mining sectors offsetting the contraction in electricity.Data released by the National Statistical Office (NSO) on Monday showed the index of industrial production (IIP) rose an annual 6.7% in Nov, higher than the 0.5% recorded in Oct and above the 5% in Nov last year.

Gaining momentum

.The manufacturing sector rose by 8% in Nov, higher than 2% in Oct and above the 5.5% in Nov last year. The mining sector, which had been impacted by unseasonal rains, rebounded and rose by 5.4% in Nov, above the 1.8% contraction in Oct and higher than the 1.9% growth in Nov last year.The highlight for Nov was also the robust expansion in consumer durables and non durables sectors, which grew by 10.3% and 7.3% respectively. “On the demand front, the positive aspect was the improvement in the output of consumer durables and non-durables which grew by 10.3% and 7.3%, respectively, reversing the contraction seen in the previous months. Factors such as GST rationalisation, income tax relief, and easing inflation have boded well for the consumption scenario,” said Rajani Sinha, chief economist at ratings agency CareEdge.“On the investment front, there has been sustained healthy momentum in the growth of infrastructure/construction goods and capital goods output,” said Sinha.The capital goods sector, a key gauge of investment activity, rose an annual 10.4% higher than the 2.1% recorded last month and above the 8.9% expansion in the month of Nov last year.Aditi Nayar, chief economist at ratings agency Icra, said the impact of the US tariffs and penalties is likely to reflect across some of the manufacturing segments, partly offsetting the positive impact of the GST rate rejig. “However, electricity demand has expanded in Dec 2025 after a gap of two months, which should boost power generation in the month, auguring well for IIP growth in the month. We expect the IIP growth to ease to 3.5-5.0% in Dec, as the base effect normalises and the benefit from restocking wanes,” said Nayar.



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World’s Fastest Rail Network Can Take You From Delhi To Rishikesh In 45 Minutes Only – Discover Where This Marvel Is

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World’s Fastest Rail Network Can Take You From Delhi To Rishikesh In 45 Minutes Only – Discover Where This Marvel Is


World’s Fastest Train: Social media is buzzing with stories of the world’s fastest rail networks, but one line stands out for its sheer speed and efficiency. Recently inaugurated, China’s Xi’an–Yan’an high-speed railway is changing rail travel and showing how advanced infrastructure can be.

The new line connects northern Shaanxi province with lightning-fast convenience, reducing travel times and transforming daily commutes. A viral video shows the sleek trains gliding along the tracks, capturing the excitement of locals witnessing the future of rail transport.

In practical terms, imagine a journey in India: this high-speed line could cover the distance between Delhi and Rishikesh in only 45 minutes.

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According to AFP, the Xi’an–Yan’an route is part of the world’s largest high-speed rail network, stretching to nearly one-fifth of the earth’s circumference. The C9309 train on this line runs at an astonishing 350 kilometres per hour (217 miles per hour), surpassing Japan’s Shinkansen, whose maximum speed is 320 kilometres per hour (200 miles per hour).

Operations officially began on December 26, and the launch day saw locals lining up to experience the speed for themselves. For many passengers, the biggest benefit is time saved.

Journeys that once felt exhausting are now fast, smooth and far more accessible, giving travellers a glimpse of what modern and efficient rail travel can achieve.

With this network, China not only demonstrates its engineering prowess but also sets a new global benchmark in speed, efficiency and passenger convenience.



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RBI To Auction Govt Bonds Worth Rs 32,000 Crore On Jan 2

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RBI To Auction Govt Bonds Worth Rs 32,000 Crore On Jan 2


New Delhi: The government of India on Monday announced the sale (re-issue) of “6.48 per cent Government Security 2035” for a notified amount of Rs 32,000 crore through price-based auction using the multiple price method. The auction will be conducted by the Reserve Bank of India’s Mumbai Office on January 2.

The Government will have the option to retain additional subscription up to Rs 2,000 crore against the security, according to a Finance Ministry statement. Up to 5 per cent of the notified amount of the sale of the security will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities, the statement said.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber system) on January 2, 2026. The non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m., and the competitive bids should be submitted between 10:30 a.m. and 11:30 a.m., the statement explained.

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The result of the auction will be announced on January 2, and payment by successful bidders will be on January 5. The Security will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central government Securities’ issued by the Reserve Bank of India vide circular dated July 24, 2018, as amended from time to time.

Governments sell bonds to borrow money from investors, essentially taking loans to fund public spending like infrastructure, social programs, and to cover budget deficits, acting as a low-risk way for citizens or institutions to lend to the government in exchange for regular interest and principal repayment, thus financing national needs without immediately raising taxes.

These bonds are considered low-risk investments since they are backed by the government and are considered safe because of their relatively low risk. Government bonds typically pay low interest rates.



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