Darden Restaurants (DRI) Announces Fiscal 2026 First Quarter Earnings Results; Declares Quarterly Dividend; And Updates Fiscal 2026 Financial Outlook

Darden Restaurants, Inc. (DRI) today announced its financial results for the most recent quarter, reporting revenue of $3.04 billion, which met analysts’ expectations. The company also achieved diluted earnings per share of $2.19, aligning with forecasts. These results reflect Darden’s continued stability in a competitive dining landscape, showcasing its ability to meet market expectations.

Key Highlights:

• Total sales increased by 10.4% to $3.0 billion, driven by a 4.7% increase in same-restaurant sales and contributions from the acquisition of 103 Chuy’s Tex Mex restaurants.
• Adjusted diluted net earnings per share from continuing operations rose by 12.6% to $1.97, excluding certain costs.
• Darden’s Board declared a quarterly cash dividend of $1.50 per share, payable on November 3, 2025.
• The company updated its fiscal 2026 outlook, projecting total sales growth of 7.5% to 8.5% and same-restaurant sales growth of 2.5% to 3.5%.
• Plans to open approximately 65 new restaurants and total capital spending of $700 to $750 million.

Darden Restaurants reported strong financial results for the first quarter of fiscal 2026, with total sales reaching $3.0 billion, a 10.4% increase compared to the same quarter last year. The growth was attributed to a 4.7% rise in same-restaurant sales and the acquisition of Chuy’s Tex Mex restaurants. President & CEO Rick Cardenas stated, “We had a strong start to the fiscal year with same-restaurant sales and earnings growth that exceeded our expectations,” highlighting the effectiveness of their strategic focus on operational excellence.

Looking ahead, Darden has updated its financial outlook for fiscal 2026, anticipating total sales growth of 7.5% to 8.5%, which includes the impact of an additional week in the fiscal year. The company expects same-restaurant sales growth of 2.5% to 3.5% and plans to open around 65 new restaurants. Cardenas emphasized the company’s commitment to leveraging its competitive advantages to drive long-term success, stating, “Our winning strategy is enabling us to grow sales and market share, while making meaningful investments in our business and returning capital to our shareholders.”

Darden Restaurants, Inc. (DRI) has experienced a mixed bag of price changes recently, with a slight decline of 1.26% over the past week, yet a more encouraging 33.30% increase over the past year. This volatility reflects the broader market dynamics and investor sentiment surrounding the restaurant sector. Despite the recent dip, Darden’s fundamentals remain robust, highlighted by a price-to-earnings ratio of 23.75, which suggests that investors are willing to pay a premium for its earnings potential. The company’s two-year compound annual growth rates (CAGR) for earnings per share and revenue stand at 7.77% and 7.31%, respectively, indicating steady growth. Additionally, a return on invested capital of 12.59% and a net profit margin of 8.62% showcase Darden’s operational efficiency and profitability. With a free cash flow CAGR of 5.86%, the company appears well-positioned to reinvest in its growth or return capital to shareholders. Overall, while short-term price fluctuations may cause concern, Darden’s solid financial metrics suggest a resilient business model capable of weathering market challenges.

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.