Orlando, Florida, U.S.A.-based Darden Restaurants and foodservice distributors like Houston, Texas, U.S.A.-based Sysco are reporting higher sales, but the restaurant industry has expressed long-term concerns about the impact of U.S. tariffs against Canada, Mexico, the E.U., and more.
Restaurant operator Darden said its total sales increased 6.2 percent year over year to USD 3.2 billion (EUR 3 billion) in its fiscal third quarter of 2025, which ended 23 February, driven largely by sales from the acquisition of 103 Chuy's restaurants – a Tex-Mex chain of restaurants with locations scattered across the U.S. – and 40 net new restaurants.
Sales at LongHorn Steakhouse rose 2.6 percent in the quarter, but the operator’s Fine Dining segment, which includes Eddie V’s Prime Seafood and The Capital Grille, realized a sales decline of 0.8 percent. Olive Garden sales rose slightly by 0.6 percent, while sales in Darden’s “Other Business” segment dropped 0.4 percent.
"Several brands set sales records during the holidays and on Valentine's Day, reinforcing the strength of our portfolio and the loyalty of our guests,” Darden CEO Rick Cardenas said.
Similarly, Sysco recently reported a 4.5 percent increase in global sales for its second fiscal quarter of 2025 compared to the same period of 2024, while its gross profit increased 3.9 percent.
Darden’s and Sysco’s sales spikes come as Americans say they are concerned about the economy and the potential impacts from increased tariffs.
The University of Michigan's Consumer Sentiment Index, which measures how U.S. consumers feel about the economy, personal finances, and business and buying conditions, fell to 64.7 in February, marking a decline of 9.8 percent from January and a 15.9 percent decrease from February 2024, though Cardenas said this has not affected Darden’s operations as of yet.
“Even if [consumers] say they're feeling less optimistic, we haven't seen a huge correlation between that and dining out,” Cardenas said during a recent earnings call, per Restaurant Business. “So, changes in consumer sentiment haven't necessarily translated to material changes in consumer spending.”
Cardenas said spending at Olive Garden is up in every income bracket except those earning less than USD 50,000 (EUR 46,000) a year.
Additionally, visits to Darden’s restaurants rose 1 percent in 2024, with visits to LongHorn Steakhouse in particular jumping 4.4 percent, according to Placer.ai.
Nevertheless, the restaurant industry has expressed concern …
