Looking back on sit-down dining stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Darden (NYSE:DRI) and its peers.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 12 sit-down dining stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and while some sit-down dining stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

Darden (NYSE:DRI)

Started in 1968 as the famous seafood joint, Red Lobster, Darden (NYSE:DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Darden reported revenues of $2.96 billion, up 6.8% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ gross margin estimates but full-year revenue guidance missing analysts’ expectations.

"We had a strong year by staying disciplined, being brilliant with the basics, and controlling what we could control," said Darden President & CEO Rick Cardenas.

Darden delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 3.1% since reporting and currently trades at $156.75.

Read our full report on Darden here, it’s free.

Best Q2: First Watch (NASDAQ:FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ:FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $258.6 million, up 19.5% year on year, in line with analysts’ expectations. It was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ earnings estimates.

The market seems happy with the results as the stock is up 20.9% since reporting. It currently trades at $17.25.

Is now the time to buy First Watch? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Bloomin' Brands (NASDAQ:BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ:BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $1.12 billion, down 2.9% year on year, in line with analysts’ expectations. It was a weak quarter for the company with underwhelming earnings guidance for the next quarter and a miss of analysts’ earnings estimates.

Bloomin' Brands had the slowest revenue growth in the group. As expected, the stock is down 3.9% since the results and currently trades at $17.57.

Read our full analysis of Bloomin' Brands’s results here.

The Cheesecake Factory (NASDAQ:CAKE)

Celebrated for its delicious (and free) brown bread, gigantic portions, and delectable desserts, Cheesecake Factory (NASDAQ:CAKE) is an iconic American restaurant chain that also owns and operates a portfolio of separate restaurant brands.

The Cheesecake Factory reported revenues of $904 million, up 4.4% year on year, in line with analysts’ expectations. Taking a step back, it was a strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ earnings estimates.

The stock is up 2.2% since reporting and currently trades at $39.80.

Read our full, actionable report on The Cheesecake Factory here, it’s free.

BJ's (NASDAQ:BJRI)

Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $349.9 million, flat year on year, in line with analysts’ expectations. More broadly, it was a solid quarter for the company with an impressive beat of analysts’ earnings estimates.

The stock is down 16.5% since reporting and currently trades at $31.11.

Read our full, actionable report on BJ's here, it’s free.

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