Darden Restaurants hits record high after upbeat quarterly sales forecast

March 20 (Reuters) - Olive Garden-parent Darden Restaurants DRI.N projected fourth-quarter comparable sales above expectations on Thursday despite missing third-quarter estimates, lifting shares to a record high.

The company's stock rose as much as 8% to $203.47, after it maintained its annual sales forecast.

Sales improved solidly in the first three weeks of the current quarter as the company managed the volatility created by frigid weather in North America, Darden CFO Raj Vennam said on a post-earnings call.

Like rivals McDonald's MCD.N and Domino's Pizza DPZ.O, Darden has used promotions and limited-time discounts to lure budget-conscious consumers.

"So I think as long as incomes are going up and outpacing inflation, I think they (consumers) are likely to keep spending," Darden CEO Rick Cardenas said on the call.

Darden sources about 80% of its supplies domestically, Vennam said, which limits exposure to import tariffs under President Donald Trump. He said the company could easily switch the remaining to domestic sources.

The company expects fourth-quarter sales in the range of $3.23 billion to $3.26 billion, largely above analysts' estimates of $3.23 billion, according to data compiled by LSEG.

At Olive Garden, same-restaurant sales grew 0.6% in the quarter ended February 23, improving from a 1.8% drop a year ago. LongHorn witnessed a 2.6% growth compared with a 2.3% rise the previous year.

Overall, same-store sales grew 0.7% for the company, missing estimates of an 1.82% increase.

Still, Darden reiterated its fiscal year 2025 revenue forecast of $12.1 billion. It narrowed the range of annual adjusted earnings per share from continuing operations to between $9.45 and $9.52 from prior range of $9.40 to $9.60.