Darden Restaurants, the parent company of popular chain Olive Garden, announced disappointing financial results for its fiscal first quarter. The company's earnings and revenue fell short of Wall Street's estimates, highlighting challenges faced by the restaurant industry amid concerns about consumer spending.

CEO Rick Cardenas acknowledged the company's disappointment in falling short of their own expectations for the quarter. However, he expressed confidence in the strength of their business and the actions being taken by their brand teams to address customers' needs in a manner that ensures the long-term health of the business.

Despite the disappointing results, Darden Restaurants saw a boost in its stock price, with shares rising by approximately 10% in premarket trading. This increase shows investors' optimism for the company's ability to navigate through the current challenges.

In terms of financial figures, Darden reported adjusted earnings per share of $1.75, slightly lower than the $1.83 expected by analysts. Additionally, the company reported revenue of $2.76 billion, missing the expected $2.8 billion. Net income for the first quarter stood at $207.2 million, or $1.74 per share, up from $194.5 million, or $1.59 per share, a year earlier.

Although net sales increased by 1% to $2.76 billion, Darden Restaurants experienced a decline of 1.1% in same-store sales during the quarter. Olive Garden, one of the company's prominent brands, particularly struggled, with same-store sales shrinking by 2.9%. In an effort to attract more customers, Olive Garden plans to reintroduce its popular Never Ending Pasta Bowl promotion later this month.

Darden's fine dining segment, consisting of Eddie V's and The Capital Grille, reported a significant decline in same-store sales of 6%. However, LongHorn Steakhouse stood out as a top performer within Darden's portfolio, with a 3.7% growth in same-store sales.

Darden Restaurants made headlines earlier in the year with its acquisition of Tex-Mex chain Chuy's Holdings for approximately $605 million. The company expects this deal to be finalized in its fiscal second quarter, coinciding with the inclusion of Ruth's Chris Steak House's results in its same-store sales figures. Darden acquired Ruth's Chris over a year ago.

Despite the challenging first quarter, Darden maintained its full-year outlook. For fiscal 2025, the company forecasts earnings per share from continuing operations of $9.40 to $9.60, along with net sales ranging from $11.8 billion to $11.9 billion.

The weaker-than-expected financial results reflect the ongoing uncertainty faced by the restaurant industry due to consumer concerns and changing trends. However, Darden Restaurants remains optimistic about its long-term prospects and continues to focus on addressing customer needs and improving performance across its brands.