STORY: Shares of Darden Restaurants soared as much as 18% on Thursday after the company raised its annual sales forecast...
as holiday diners flock to its popular restaurants, including Olive Garden, despite higher prices.
Same-store sales at Olive Garden rose 2% after three straight quarters of decline.
And sales at the company's LongHorn Steakhouse chain rose 7.5%.
Higher menu prices combined with steady foot traffic have helped Darden maintain profits, even in the face of rising costs - which include elevated meat prices and higher worker wages.
Rival chains such as Shake Shack and Chipotle have also grown in popularity, as escalating fast-food prices have narrowed the cost gap with casual dining restaurants.
Easing inflation has also prompted middle- and higher-income consumers to dine out more.
For the full year, Darden expects sales of more than $12 billion, topping its previous estimate.