Darden Restaurants CEO Says Consumers 'Likely To Keep Spending' Despite 'Challenging Environment'

by Erica Kollmann Benzinga Staff Writer

Consumer confidence fell sharply in March as Americans grappled with historically high inflation expectations and uncertainties surrounding tariffs. But, Darden Restaurants DRI CEO Rick Cardenas said Thursday the company has seen resilience in consumer spending when it comes to dining out.

What To Know: Darden Restaurants released its third-quarter earnings report on Thursday morning and posted profitable sales growth. The company also issued fiscal 2025 sales guidance above analysts' expectations even as consumers feel the pinch from years of inflation and grow concerned about the future of the economy.

Cardenas gave some insight into the company's relatively rosy outlook in what he called a "challenging environment."

On the company's earnings call with analysts, Cardenas said all of the company's segments grew in total sales and profit margins, despite the drop in consumer confidence.

"People, even if they say they're feeling less optimistic, we haven't seen a huge correlation between that and dining out. So changes in consumer sentiment haven't necessarily translated to material changes in consumer spending," Cardenas said.

Consumers are looking for value for their money, Cardenas said, and noted a "little bit more pullback in guests with incomes below $50,000.

Darden's fiscal year sales guidance of $12.1 billion across all of its brands shows the company's confidence in consumers continuing to spend on dining out in the coming months.

"I think as long as incomes are going up and outpacing inflation, I think they're likely to keep spending," Cardenas said.

Darden Restaurants includes Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Chuy’s, Seasons 52, Eddie V’s and Bahama Breeze.

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