Darden Restaurants' Financial Highlights for Q4 and Fiscal Year 2025
Darden Restaurants, Inc. has announced results for the fourth quarter and the entire fiscal year ending May 25, 2025. Reflecting a remarkable performance, the company reported a total sales increase of 10.6% during Q4, amounting to $3.3 billion. This growth was driven by a same-restaurant sales rise of 4.6%, complemented by contributions from its acquisition of 103 Chuy's Tex Mex restaurants and the opening of 25 new outlets.
Key highlights from the fourth quarter include:
- - Sales Growth: Consolidated sales reached $3.3 billion, representing a significant year-over-year increase.
- - Same-Restaurant Sales: Olive Garden and LongHorn Steakhouse posted strong same-restaurant sales growth of 6.9% and 6.7%, respectively.
- - Net Earnings: The reported diluted net earnings per share stood at $2.58, with an adjusted figure of $2.98 after accounting for specific costs related to the Chuy’s integration and restaurant closures. This reflects a growth of 12.5% from the previous year.
For the full fiscal year 2025, Darden's total sales rose by 6% to $12.1 billion. The overall same-restaurant growth was 2%, with Olive Garden achieving a 1.7% increase, while LongHorn did significantly better with a 5.1% uplift. Reported diluted net earnings per share came in at $8.88, showing a 4.1% rise from fiscal 2024.
Strategic Initiatives and Financial Outlook
Darden’s management attributes this robust performance to a well-rounded strategic approach anchored in four core advantages. Darden's President & CEO, Rick Cardenas, emphasized the importance of maintaining a focus on foundational business principles, stating, "Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value."
Quarterly Dividend and Stock Buyback Program
The Board of Directors declared a quarterly cash dividend of $1.50 per share, a 7.1% increase from the preceding quarter. This dividend is scheduled for payment on August 1, 2025, to shareholders on record by July 10, 2025. Additionally, Darden has initiated a new $1 billion share repurchase program, underscoring its commitment to returning value to shareholders. This program, which replaces the existing authorization, signals confidence in the company’s operational strength and future growth potential.
Fiscal 2026 Outlook
Looking forward to fiscal year 2026, Darden anticipates total sales growth of approximately 7% to 8%, benefiting from an additional week of sales in this 53-week fiscal calendar. The same-restaurant sales are expected to grow by around 2% to 3.5%, along with plans to open 60 to 65 new restaurants. The projected capital spending for the year ranges between $700 million to $750 million, demonstrating Darden’s strategy of growth through targeted investments.
With an effective tax rate projected at around 13%, Darden aims for diluted net earnings per share of $10.50 to $10.70, which will include the impact of the extra week. Such financial projections highlight positive momentum in revenue and earnings generation while addressing inflation and operational costs.
Conclusion
Darden's resilience amid economic uncertainties and its focused strategy has translated into consistent growth and stability. Looking ahead, the company’s diversified portfolio, which includes Olive Garden and LongHorn Steakhouse, positions it well for future success. Stakeholders are invited to stay tuned for more updates during the upcoming investor conference call, where insights on forthcoming financial performance will be shared.
For further information on Darden's performance and future endeavors, please visit
Darden's Website.