It happened again. Jim Cramer, the man who could probably make Berkshire Hathaway unprofitable by telling you to invest in it, was bullish on Darden Restaurants heading into earnings. And, surprise surprise, things didn’t quite go as planned (in other shocking news, water is wet).

Darden, the parent company of Olive Garden, LongHorn Steakhouse, and (as of July) Chuy’s, reported earnings this morning, and it wasn’t exactly the Michelin-starred moment Cramer was hoping for. While the company technically beat on earnings per share (by a whole penny), revenue came in below expectations, and same-store sales numbers were the real killer.

Darden reported adjusted earnings per share of $2.80, just barely edging out the expected $2.79. But revenue clocked in at $3.16 billion, missing the Wall Street suit’s expectation of $3.21 billion. Even worse, same-store sales growth was an underwhelming 0.7%, falling short of the 1.7% analysts had projected. Investors weren’t loving the underperformance, sending shares down nearly 1% in premarket trading.

With numbers this close, what went wrong? Olive Garden and LongHorn Steakhouse (the two favorite children of Darden’s portfolio) showed up to earnings season like students who forgot there was an exam that day. Olive Garden’s same-store sales rose just 0.6%, way below the 1.5% that analysts expected. LongHorn Steakhouse did slightly better with a 2.6% increase, but Wall Street wanted to see 5%. Darden’s fine-dining segment, which includes The Capital Grille and Ruth’s Chris, saw same-store sales decline by 0.8%, while the casual dining segment (home to Cheddar’s Scratch Kitchen and Yard House) dropped 0.4%. 

In an economy where tech stocks are getting wrecked and even Tesla (whose CEO hangs out with the most powerful person on the planet) is down 37% this year, you’d think these results would be respected… but I guess not. The restaurant industry is a tough business.

To be fair, the company is still making money, with net income rising to $323.4 million, up from $312.9 million a year ago. But the real reason revenue increased is because Darden threw $605 million at Chuy’s last year, expanding their portfolio. Without that acquisition, this earnings report would have been worse.

Now, let’s talk about our guy, Jim. Before the earnings release, Cramer was blowing smoke up Darden like it was the next great value play, saying, “I’m betting we’ll see good numbers from Darden.” Now, in fairness, he did acknowledge that restaurant stocks have been acting "oddly" lately (reacting negatively to good news and vice versa, while flatlining). But still, he went all-in on the idea that Darden’s value-based dining would win over consumers. Instead, the market is flocking to Texas Roadhouse and Brinker International (Chili’s) because the numbers show that people like their steak and fajitas at a better price point. Go figure.

Make no mistake, Darden isn’t exactly imploding, but the numbers weren’t what Wall Street wanted. They reiterated their full-year revenue forecast at $12.1 billion and tightened their earnings outlook to a range of $9.45 to $9.52 per share. So, there’s still stability in the business, even if their same-store sales left a bad taste in investors’ mouths.

This marks the 3rd disappointing earnings report in a row. There’s always next time.

PS: Recently, I broke down a stock that both Nancy Pelosi and Cathie Wood bought at the same time… but here’s the thing: it was only available for premium members.

Not only did I reveal the stock, but I also dissected Nancy’s trade structure, proving she’s in it for the long haul. If you weren’t a premium member, you missed the breakdown on why her entry signals serious conviction… the kind of insight that separates smart traders from the ones just chasing headlines.

If you want real stock picks and trade ideas every single day—not just the surface-level news everyone else sees… you need to check out our premium membership. We dig through SEC filings and insider trades daily, flagging the best opportunities. And when we find a can’t-miss trade, we break it down in a full write-up… so you know exactly what’s happening and why it matters.

Don’t miss the next one. Click here and become a premium member today.

Stock.News has positions in Tesla.