Darden Restaurants, Inc. (DRI – Free Report) reported better-than-expected results in second-quarter fiscal 2018 results.

Adjusted earnings of 73 cents per share beat the Zacks Consensus Estimate of 70 cents by 4.3%. Earnings increased 14.1% year over year on the back of higher revenues. Notably, the quarter marked the 13th consecutive earnings beat for the company. Darden's impressive earnings also resulted from the company's relentless efforts in improving the basic operating factors of the business — food, service and atmosphere.

Total revenues of $1.88 billion surpassed the Zacks Consensus Estimate of $1.85 billion and increased 14.6% year over year. The upside was driven by the addition of 153 Cheddar's Scratch Kitchen and 28 other new restaurants. The reported quarter witnessed strong comps growth as well These factors helped the company gain market share.

Darden Restaurants, Inc. Price, Consensus and EPS Surprise

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Moreover, Darden's shares have rallied 24.5% so far this year, outperforming the industry's gain of 14.8%.

Revenues by Segments

Darden reports its business under four segments: Olive Garden, LongHorn Steakhouse, Fine Dining, which includes The Capital Grille and Eddie V's, and Other Business.

In the reported quarter, the company's legacy brands posted blended comps growth of 3.1%. In the previous quarter, comps had increased 1.7%. Meanwhile, the company witnessed increased sales across all segments in the fiscal second quarter.

Sales at Olive Garden were up 4% year over year to $951.6 million. Comps grew 3% at the segment, much higher than prior-quarter comps growth of 1.9%. Traffic rose 1.1% along with a 1.7% improvement in pricing and 0.2% growth in menu mix.

Sales at Fine Dining increased 9.3% to $140.6 million. Comps at The Capital Grille rose 3.8%, higher than the prior-quarter comps growth of 2%. Eddie V's also posted comps growth of 6.8%, significantly higher than the 2.5% improvement recorded in the preceding quarter.