Darden Restaurants: Holiday Growth Ahead

Darden Restaurants Inc. is the largest full-service restaurant group in the country, operating ten dining chains that range from fine dining to casual bars.

How has the company fared in recent months? We examined the location analytics to evaluate Darden’s recent performance and took a closer look at what the holiday season might bring for its wide array of brands.

Darden Outpaces the Full-Service Restaurant Segment in Q3 2024

The full-service restaurant category has faced significant challenges in recent years as rising food prices, labor shortages, and inflation pushed costs up and some customers away. But since the beginning of 2024, Darden has managed to stay ahead and outpace the wider full-service restaurant segment in terms of year-over-year (YoY) quarterly visits. Q3 2024 visits were 0.9% higher than in Q3 2023. In contrast, the broader full-service segment experienced a 1.9% decline in the same period. 

As restaurant inflation finally begins to cool and the dining segment tiptoes cautiously toward recovery, Darden’s ability to stay ahead of the competition suggests that its brands are resonating with customers even during periods of economic uncertainty.

November’s Momentum Across Chains

Darden’s portfolio runs the gamut from household names like Olive Garden (with over 900 locations) and LongHorn Steakhouse (over 500 locations) to smaller chains like Yard House and Bahama Breeze. And zooming in on the recent November data reveals that most chains are still enjoying year-over-year (YoY) visit growth. Yard House led the pack with 11.0% more visits than in November 2023, followed by LongHorn Steakhouse (9.0% YoY growth), and Bahama Breeze (8.8% YoY growth). 

This steady November momentum bodes well for Darden as the typically busy holiday season approaches. 

Darden’s December Spike

Indeed, diving into previous years’ visitation patterns reveals that Darden’s brands generally receive sizable visit bumps over the holiday season. 

Analyzing December visits in 2019, 2022, and 2023 relative to each year’s January to November monthly visit average highlighted significant visit boosts across almost all Darden brands. The Capital Grille led the charge in December 2023, with visits 42.3% higher than the January to November average, followed closely by Ruth’s Chris Steak House (34.4%) and Season’s 52 (31.1%). 

These consistent December traffic spikes coupled with November’s strong showing suggests that the company is well-positioned to sustain its current momentum into the holiday season and beyond. 

Final Thoughts

Darden Restaurants continues to be a leader in the full-service segment, enjoying visit growth and capturing holiday foot traffic.

Will this year’s holiday season bring increased foot traffic to the company’s brands?

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