LongHorn Shines Among Darden Restaurants

Two brands that Darden Restaurants is trying to reinvent but have had struggling sales in the recession LongHorn Steakhouse and Red Lobster both showed significantly better performance in the company’s earnings report released this week.

But analysts are more enthused about LongHorn’s results and say it will take more time to tell whether the 42-year-old seafood chain is really turning things around.

“Things aren’t great at Red Lobster yet,” said Steve West, an analyst for Stifel Nicolaus.

Results for Orlando-based Darden, discussed Wednesday with analysts, included sales increases for its three major chains’ established restaurants after several quarters of declines. LongHorn had the biggest jump 1.9 percent – at restaurants open at least 16 months. Olive Garden’s sales increased by 1.5 percent and Red Lobster’s by 0.9 percent.

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Caption: Server Melissa Cotton waits on customers Jean Lindsey (middle) and Liz Schneider (right) at LongHorn Steakhouse in Winter Garden.

Credit: Stephen M. Dowell, Orlando Sentinel