Darden Restaurants reported that its LongHorn Steakhouse chain achieved 7.2% same-store sales growth while executives noted "double-digit demand destruction" for beef at retail stores. The average price for uncooked beef steaks has reached a record high of about $12.74 per pound, according to federal data. This pricing dynamic is reshaping how Americans consume expensive protein.
Restaurants have raised prices more slowly than grocery stores in recent years, making steakhouse meals appear more valuable than previously. Darden CFO Raj Vennam explained the company has "given ourselves a lot of flexibility by underpricing inflation over several years." LongHorn has "significantly underpriced beef costs versus the grocery store over time," helping drive customer traffic.