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

Darden's Fiscal 2026 First Quarter Results

Darden Restaurants, Inc. (NYSE: DRI) has recently unveiled its financial performance for the first quarter ending on August 24, 2025. The results showed a remarkable increase in total sales, rising by 10.4%, which reached $3.0 billion. This growth was primarily driven by a 4.7% increase in same-restaurant sales and contributions from newly acquired locations, including Chuy's Tex Mex restaurants.

Key Financial Highlights

1. Sales Growth: Total sales surged to $3,044.7 million compared to $2,757.0 million for the same quarter last year. The increase includes successful sales from major brands such as Olive Garden and LongHorn Steakhouse, which reported same-restaurant sales growth of 5.9% and 5.5%, respectively.

2. Earnings Per Share: The diluted net earnings per share reached $2.19, with an adjusted figure of $1.97, marking a 12.6% increase year-over-year. The adjustments accounted for one-off costs associated with acquisitions and permanency closings of restaurants.

3. Share Repurchase Program: Darden also announced the repurchase of approximately 0.9 million shares for a total cost of $183 million during this quarter. This initiative reinforces the company's commitment to returning capital to its shareholders.

Management's Perspective

Rick Cardenas, Darden's President and CEO, expressed pride over the strong start to the fiscal year, emphasizing that the results underscore the effectiveness of their strategic plans. The president highlighted the importance of focusing on fundamental operations while leveraging the company's competitive advantages to enhance long-term growth potential. In his statement, Cardenas urged the restaurant teams to remain committed to excellence in their daily operations as a vital component of their overall business strategy.

Segment Performance

Darden has updated its reporting structure to present segment profits correctly by excluding pre-opening costs that did not contribute to revenue outputs. The segments for Olive Garden, LongHorn Steakhouse, and the Other Business (which includes Chuy's) showed robust segment profits. For instance, sales for Olive Garden climbed to $1,301.1 million, generating a segment profit of $267.6 million.

Quarterly Dividend Declaration

In line with its financial success, Darden's Board of Directors declared a quarterly cash dividend of $1.50 per share, which is payable on November 3, 2025. Shareholders must be on record by the close of business on October 10, 2025, to qualify for this dividend.

Future Financial Outlook

Darden has released an optimistic financial outlook for fiscal 2026, predicting total sales growth in the range of 7.5% to 8.5%, alongside expectations for same-restaurant sales growth between 2.5% to 3.5%. The company is also planning to open approximately 65 new restaurants throughout the fiscal year. In terms of capital spending, Darden estimates they will allocate between $700 to $750 million, while also anticipating an inflation rate of 3.0% to 3.5%.

Conclusion

Darden Restaurants, with its well-known brands like Olive Garden, LongHorn Steakhouse, and others, consistently demonstrates remarkable resilience and growth potential in the competitive restaurant industry. The significant sales growth and a clear strategy for future expansion solidify Darden's position in the market. Stakeholders and investors can look forward to the subsequent developments as the company capitalizes on its strengths to further enhance value and shareholder returns.

For more information, visit Darden’s Official Website. Additionally, to review the complete financial results, stakeholders can join the investor conference call scheduled for 8:30 AM ET today.