#USA #Orlando #Darden Restaurants #Olive Garden #LongHorn Steakhouse

Darden Restaurants Reports Successful Fiscal 2026

Darden Restaurants, Inc. (NYSE: DRI) has announced impressive financial results for both its fourth quarter and the entire fiscal year ending May 31, 2026. This year marks a significant financial milestone for the company, which recorded robust sales and earnings, driven by the opening of new locations and an additional week of operations compared to last year.

Fourth Quarter Highlights

In the fourth quarter of fiscal 2026, Darden experienced a total sales increase of 13.7%, totaling $3.72 billion. This growth included additional sales of 7.6% attributed to the extra week of operations. The same-restaurant sales blended increase was reported at 4.6%, supported by strong performances from Darden’s key brands:

• - Olive Garden: Increased by 2.4%
• - LongHorn Steakhouse: Increased by 9.5%
• - Fine Dining segment: Increased by 1.9%

Reported diluted net earnings per share reached $3.54, while adjusted figures excluding specific costs showed an increase to $3.66, up 22.8% year-over-year. The company also repurchased $138 million of its common stock during this quarter as part of its growth strategy.

Annual Performance

For the full fiscal year 2026, total sales rose 9.4% to $13.21 billion, and same-restaurant sales grew 4.5%. Noteworthy contributions came from:

• - Olive Garden: Annual sales of $5.59 billion
• - LongHorn Steakhouse: Annual sales of $3.42 billion
• - Fine Dining: Annual sales hitting $1.38 billion

Diluted net earnings per share from continuing operations were reported at $10.44. Excluding certain charges, adjusted earnings reached $10.64, increasing 11.4% from the previous year. An extra week of operations contributed $0.25 to this year’s earnings.

Dividend and Share Repurchase Program

The Board of Directors declared a quarterly cash dividend of $1.62 per share, marking an 8.0% increase over the last quarter. This dividend is set to be paid on August 3, 2026. Moreover, Darden announced the authorization of a new $1.5 billion share repurchase program which replaces previous authorizations and underscores the company’s commitment to returning capital to shareholders.

CFO Raj Vennam commented on Darden's operational strength, stating, "Our robust operating model generates substantial cash flows, allowing us to comfortably maintain our dividends and fund new restaurant openings."

Fiscal 2027 Outlook

Looking ahead, Darden provided an optimistic outlook for fiscal 2027, forecasting total sales between $13.60 billion and $13.75 billion with same-restaurant sales growth in the range of 2.5% to 3.5%. The company plans to open 75 to 80 new restaurants and anticipates capital spending of approximately $875 million.

In addition, the company expects an effective tax rate of around 13.5% and diluted net earnings per share from continuing operations in the range of $11.10 to $11.35. This performance projection demonstrates Darden's strategic focus on growth amid a competitive landscape.

As Darden continues to fine-tune its operational strategy and elevate its service offerings across its diverse brand portfolio, stakeholders can look forward to a promising year ahead marked by expansion and sustained profitability.

Conclusion

Darden Restaurants has shown significant momentum through fiscal 2026, setting the stage for a robust fiscal 2027 with ambitious growth plans and a solid financial foundation. The combination of increased sales, strong same-restaurant performance, dividends, and share repurchases highlights Darden’s commitment to shareholder value and operational excellence. Stakeholders are encouraged to remain informed through the upcoming Annual Meeting of Shareholders on September 23, 2026 and subsequent investor conference calls.