Darden Restaurants (DRI) Announces Fiscal 2025 Fourth Quarter And Full Year Earnings Results; Increases Quarterly Dividend; Authorizes New $1 Billion Share Repurchase Program; And Provides Fiscal 2026 Outlook

Darden Restaurants, Inc. (DRI) today announced its financial results for the most recent quarter, reporting earnings per share of $2.58, which met analysts’ expectations. The company also achieved quarterly revenue of $3.27 billion, aligning with forecasts. These results reflect Darden’s continued resilience in the competitive restaurant industry as it navigates changing consumer preferences and economic conditions.

Key Highlights:

• Total sales for Q4 2025 increased by 10.6% to $3.3 billion, driven by a 4.6% increase in same-restaurant sales and contributions from the acquisition of 103 Chuy’s restaurants.
• Adjusted diluted net earnings per share for Q4 were $2.98, a 12.5% increase year-over-year.
• Darden’s total sales for fiscal 2025 rose by 6.0% to $12.1 billion, with a blended same-restaurant sales increase of 2.0%.
• The company declared a quarterly cash dividend of $1.50 per share, a 7.1% increase from the previous quarter.
• Darden authorized a new $1 billion share repurchase program.
• Fiscal 2026 outlook includes total sales growth of 7% to 8% and same-restaurant sales growth of 2% to 3.5%.

Darden Restaurants reported strong financial results for the fourth quarter and fiscal year 2025, with total sales reaching $3.3 billion in Q4, marking a 10.6% increase. The growth was attributed to a 4.6% rise in same-restaurant sales and the acquisition of Chuy’s restaurants. President & CEO Rick Cardenas expressed satisfaction with the results, stating, “We had a strong quarter with same-restaurant sales and earnings growth that exceeded our expectations.” The company also highlighted its commitment to a winning strategy that focuses on competitive advantages and operational excellence.

Looking ahead, Darden provided an optimistic outlook for fiscal 2026, projecting total sales growth of 7% to 8%, which includes the impact of an additional 53rd week. The company anticipates same-restaurant sales growth of 2% to 3.5% and plans to open 60 to 65 new restaurants. CFO Raj Vennam emphasized the company’s long-term goal of achieving a 10-15% total shareholder return, reflecting the strength of its operating model and cash flow durability.

Darden Restaurants, Inc. (DRI) has shown impressive price appreciation over the past year, with a staggering 51.63% increase, reflecting strong investor confidence in the company’s growth trajectory. Over the last six months alone, the stock has surged by 41.43%, indicating a robust recovery and positive market sentiment. The company’s fundamentals also paint a promising picture, with a price-to-earnings ratio of 25.08 suggesting that investors are willing to pay a premium for its earnings potential. Darden’s two-year compound annual growth rates (CAGR) for earnings per share and revenue stand at 9.77% and 6.75%, respectively, showcasing consistent growth in profitability and sales. Additionally, a return on invested capital of 12.33% and a net profit margin of 8.90% highlight the company’s efficiency in generating returns from its investments. As Darden continues to expand its footprint and enhance its offerings, the upward price momentum may well be justified by these solid financial metrics. Overall, DRI appears to be a compelling investment opportunity for those looking to capitalize on the recovery in the restaurant sector.

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 29, 2022, it owned and operated 1,867 restaurants, which included 884 under the Olive Garden brand, 546 under the LongHorn Steakhouse brand name, 172 under the Cheddar’s Scratch Kitchen brand, 85 under the Yard House brand name, 62 under The Capital Grille brand, 45 under the Seasons 52 brand name, 42 under the Bahama Breeze brand, 28 under the Eddie V’s Prime Seafood brand name, and 3 under the Capital Burger brand; and franchised 60 restaurants comprising 35 under the Olive Garden brand, 18 under the LongHorn Steakhouse brand name, 4 under the Cheddar’s Scratch Kitchen brand, 2 under The Capital Grille brand name, and 1 under the Bahama Breeze brand.Darden Restaurants, Inc. was founded in 1968 and is based in Orlando, Florida.