People can’t get enough of LongHorn Steakhouse and Olive Garden

By Jordan Valinsky, CNN

New York (CNN) — It’s not just Chili’s that Americans are obsessed with.

Darden Restaurants, which owns Olive Garden and LongHorn Steakhouse, reported better-than-expected sales at those two chains, helping propel its stock 9% higher in premarket trading Thursday.

LongHorn sustained its momentum and posted same-store sales growth of 7.5%, outperforming the other chains that Darden owns. The affordable steakhouse chain is on fire this year as it maintained lower prices and, as a result, attracted price-conscious consumers.

At Olive Garden, Darden’s largest chain in terms of revenue, same-store sales rose 2% and beat analysts’ expectations. The chain benefited from changes to its “Never Ending Pasta Bowl” campaign by starting it earlier than usual and tacking on an additional four weeks. It’s also in the midst of a trial of a new partnership with Uber for delivery orders.

Darden’s upscale chains, which include The Capital Grille and Ruth’s Chris Steak House, struggled. Sales in its fine-dining segment dipped nearly 6%, signaling that consumers are still cutting back on spending at lavish locations and opting for more affordable alternatives.

Despite that, Darden raised its full-year sales outlook, indicating that diners are returning to eating out. The fast casual segment has been hammered by weak consumer spending and persistent inflation. That tipped some chains like TGI Fridays and Red Lobster into bankruptcy or caused others, like Applebee’s, to reevaluate their menu.

On the flip side, savvy marketing and improving the quality of food has helped Chili’s. Shares of its parent company Brinker International are up more than 200% for the year, bolstered by the strength of the Southwestern-inspired chain.

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