Part I [Business](index=4&type=section&id=Item%201.%20Business) Darden Restaurants operates 2,159 full-service restaurants, focusing on operational excellence and strategic brand management Company-Owned and Franchised Restaurants as of May 25, 2025 | Brand | Owned & Operated | Franchised | Total | | :--- | :--- | :--- | :--- | | Olive Garden | 935 | 52 | 987 | | LongHorn Steakhouse | 591 | 20 | 611 | | Cheddar's Scratch Kitchen | 181 | 3 | 184 | | Chuy's | 108 | 0 | 108 | | Yard House | 88 | 0 | 88 | | Ruth's Chris | 82 | 76 | 158 | | The Capital Grille | 71 | 2 | 73 | | Seasons 52 | 43 | 0 | 43 | | Eddie V's | 29 | 0 | 29 | | Bahama Breeze | 28 | 1 | 29 | | The Capital Burger | 3 | 0 | 3 | | **Total** | **2,159** | **154** | **2,313** | - On October 11, 2024, Darden acquired **Chuy's Holdings, Inc. for $649.1 million** in total consideration, financed through the issuance of senior notes[18](index=18&type=chunk) - In the fourth quarter of fiscal 2025, Darden agreed to sell its **eight Canadian Olive Garden restaurants** to Recipe Unlimited, which will operate them as franchises[20](index=20&type=chunk) - The company announced its decision to explore strategic alternatives for the Bahama Breeze brand, including a potential sale or conversion of its **28 locations**[21](index=21&type=chunk) Restaurant Count and Sales Growth (Last 5 Fiscal Years) | Fiscal Year | Total Restaurants | Total Sales (in millions) | | :--- | :--- | :--- | | 2021 | 1,834 | $7,196.1 | | 2022 | 1,867 | $9,630.0 | | 2023 | 1,914 | $10,487.8 | | 2024 | 2,031 | $11,390.0 | | 2025 | 2,159 | $12,076.7 | - Darden's human capital strategy focuses on employee retention, with **197,924 team members** in fiscal 2025 and an **hourly turnover rate of 67%**, one of the industry's lowest[74](index=74&type=chunk)[75](index=75&type=chunk)[84](index=84&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from macroeconomic factors, human capital, health and safety, cybersecurity, and competitive pressures - **Inflation and Macroeconomic Risks**: The company faces pressure from rising costs for food commodities, labor, healthcare, and utilities, with economic slowdowns potentially reducing consumer discretionary spending[125](index=125&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) - **Human Capital Risks**: The ability to attract and retain qualified team members is critical, facing challenges from a competitive labor market, rising minimum wages, and potential changes in immigration laws[133](index=133&type=chunk)[134](index=134&type=chunk) - **Health, Safety, and Cybersecurity Risks**: The business is vulnerable to food-borne illness outbreaks and cybersecurity breaches, which could lead to data loss, operational disruption, and legal liability under evolving privacy laws[138](index=138&type=chunk)[139](index=139&type=chunk)[143](index=143&type=chunk) - **Integration and Strategic Risks**: The successful integration of the Chuy's brand is complex and may not yield anticipated synergies, alongside risks from intense competition, changing consumer preferences, and adverse social media impacts[144](index=144&type=chunk)[151](index=151&type=chunk)[153](index=153&type=chunk) - **Operational and Financial Risks**: A majority of restaurants are in leased properties, creating long-term obligations, with additional exposures to supply chain disruptions, goodwill impairment, tax law changes, and derivative market volatility[157](index=157&type=chunk)[160](index=160&type=chunk)[180](index=180&type=chunk) [Unresolved Staff Comments](index=29&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - There are no unresolved staff comments[186](index=186&type=chunk) [Cybersecurity](index=29&type=section&id=Item%201C.%20Cybersecurity) Darden manages cybersecurity risk through an ERM framework overseen by the Audit Committee, reporting no material incidents to date - Cybersecurity risk management is integrated into the company's overall ERM program, with oversight provided by the Audit Committee and the Board of Directors[187](index=187&type=chunk)[192](index=192&type=chunk) - The company employs a multi-faceted strategy including an incident response plan, regular third-party audits based on the NIST Framework, penetration testing, and cybersecurity awareness training for employees[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) - The cybersecurity program is led by the Chief Information Officer (CIO), who has over 20 years of experience and provides periodic updates to the Audit Committee and the full Board[193](index=193&type=chunk)[195](index=195&type=chunk) - As of the filing date, Darden is not aware of any cybersecurity threats or incidents that have materially affected or are reasonably likely to materially affect its business, operations, or financial condition[191](index=191&type=chunk) [Properties](index=31&type=section&id=Item%202.%20Properties) As of May 25, 2025, Darden operated 2,159 restaurants, primarily on leased sites, across the U.S. and Canada Restaurant Property Ownership (as of May 25, 2025) | Property Type | Count | | :--- | :--- | | Owned Sites | 94 | | Leased Sites | 2,065 | | **Total Company-Owned** | **2,159** | Lease Classification | Lease Type | Count | | :--- | :--- | | Land-Only Leases | 1,102 | | Ground and Building Leases | 666 | | Space/In-Line/Other Leases | 297 | | **Total Leased Sites** | **2,065** | [Legal Proceedings](index=31&type=section&id=Item%203.%20Legal%20Proceedings) The company faces ordinary course legal proceedings, which management believes will not materially impact its financial position or operations - Darden is subject to ordinary course litigation common to the restaurant industry, including claims from guests and employees[468](index=468&type=chunk) - The company believes that the resolution of current legal matters will not have a material adverse effect on its financial condition or results of operations[468](index=468&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[198](index=198&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Darden's common stock trades on the NYSE (DRI), with recent share repurchases and a new $1 billion program, outperforming market indices - The company's common stock is traded on the NYSE under the symbol **DRI**[200](index=200&type=chunk) Share Repurchases for Quarter Ended May 25, 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining Under Program | | :--- | :--- | :--- | :--- | | Feb 24 - Mar 30, 2025 | 157,368 | $193.77 | $517.7M | | Mar 31 - Apr 27, 2025 | 53,445 | $196.72 | $507.2M | | Apr 28 - May 25, 2025 | 49,251 | $203.32 | $497.2M | | **Quarter-to-Date** | **260,064** | **$196.19** | **$497.2M** | - On June 18, 2025, the Board of Directors authorized a new share repurchase program for up to **$1 billion** of its common stock, replacing the previous authorization[202](index=202&type=chunk) - Over the five-year period ending May 2025, a $100 investment in Darden stock grew to **$307.28**, outperforming the S&P 500 (**$205.63**) and the S&P Restaurant Sub-Index (**$179.37**)[203](index=203&type=chunk)[205](index=205&type=chunk) [Reserved](index=34&type=section&id=Item%206.%20Reserved) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2025, Darden's sales grew 6.0% to $12.08 billion with diluted EPS up 4.1%, projecting continued growth and strong liquidity Fiscal 2025 Financial Highlights vs. Fiscal 2024 | Metric | Fiscal 2025 | Fiscal 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Sales | $12.08 billion | $11.39 billion | +6.0% | | Diluted EPS (Continuing Ops) | $8.88 | $8.53 | +4.1% | | Net Earnings (Continuing Ops) | $1.05 billion | $1.03 billion | +2.0% | | Blended Same-Restaurant Sales | - | - | +2.0% | - **Fiscal 2026 Outlook**: Total sales growth projected at **7.0% to 8.0%**, same-restaurant sales growth at **2.0% to 3.5%**, and **60 to 65 new restaurant openings**[210](index=210&type=chunk) Segment Sales and Same-Restaurant Sales (SRS) - Fiscal 2025 vs. 2024 | Segment | Sales (FY25, in millions) | % Change from FY24 | SRS % Change | | :--- | :--- | :--- | :--- | | Olive Garden | $5,212.9 | 2.9% | 1.7% | | LongHorn Steakhouse | $3,025.5 | 7.8% | 5.1% | | Fine Dining | $1,304.8 | 1.0% | (3.0)% | | Other Business | $2,533.5 | 13.8% | 0.2% | Segment Profit Margin - Fiscal 2025 vs. 2024 | Segment | FY25 Profit Margin | FY24 Profit Margin | Change (BP) | | :--- | :--- | :--- | :--- | | Olive Garden | 22.3% | 22.1% | +20 BP | | LongHorn Steakhouse | 19.3% | 18.4% | +90 BP | | Fine Dining | 18.6% | 19.0% | -40 BP | | Other Business | 15.7% | 15.3% | +40 BP | - The company's adjusted debt to EBITDAR ratio was **2.1** as of May 25, 2025, well below the financial covenant requirement of **3.50 to 1.00**[261](index=261&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Darden manages market risks from interest rates, currency, and commodities using derivatives, with a one-year value at risk of $63.3 million for net earnings - The company is exposed to market risks including interest rates, foreign currency, compensation, and commodity prices[271](index=271&type=chunk) - Darden uses derivative instruments like swaps and forwards to hedge these risks[271](index=271&type=chunk) - As of May 25, 2025, the one-year value at risk (95% confidence) for net earnings from changes in equity forwards, commodity instruments, currencies, and floating-rate debt was approximately **$63.3 million**[272](index=272&type=chunk) - The one-year value at risk for the fair value of long-term fixed-rate debt was approximately **$121.1 million**[273](index=273&type=chunk) [Financial Statements and Supplementary Data](index=46&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Darden's consolidated financial statements, including auditor reports and detailed notes on accounting policies, acquisitions, and debt [Reports of Management and Independent Registered Public Accounting Firm](index=47&type=section&id=Reports%20of%20Management%20and%20Independent%20Registered%20Public%20Accounting%20Firm) Management asserts effective internal controls, and KPMG issued an unqualified opinion on financial statements, with long-lived asset impairment as a critical audit matter - Management concluded that the company's internal control over financial reporting was effective as of May 25, 2025[282](index=282&type=chunk) - KPMG LLP issued an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting[285](index=285&type=chunk)[291](index=291&type=chunk) - The critical audit matter identified by KPMG was the evaluation of long-lived assets for impairment, noting the subjective auditor judgment required to evaluate assumptions about future cash flows and useful life[297](index=297&type=chunk) [Consolidated Financial Statements](index=51&type=section&id=Consolidated%20Financial%20Statements) Darden's FY2025 consolidated financial statements show $12.08 billion in sales, $1.05 billion net earnings, and strong cash flow from operations Consolidated Statements of Earnings (in millions, except per share data) | | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Sales | $12,076.7 | $11,390.0 | $10,487.8 | | Operating Income | $1,362.3 | $1,314.2 | $1,201.8 | | Earnings from Continuing Operations | $1,051.0 | $1,030.5 | $983.5 | | Net Earnings | $1,049.6 | $1,027.6 | $981.9 | | Diluted Net EPS | $8.86 | $8.51 | $7.99 | Consolidated Balance Sheets (in millions) | | May 25, 2025 | May 26, 2024 | | :--- | :--- | :--- | | Total Current Assets | $937.7 | $822.8 | | Total Assets | $12,587.0 | $11,323.0 | | Total Current Liabilities | $2,247.5 | $2,192.5 | | Total Liabilities | $10,275.7 | $9,080.5 | | Total Stockholders' Equity | $2,311.3 | $2,242.5 | Consolidated Statements of Cash Flows (in millions) | | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $1,707.0 | $1,621.7 | | Net Cash used in Investing Activities | $(1,278.3) | $(1,324.6) | | Net Cash used in Financing Activities | $(385.8) | $(483.4) | [Notes to Consolidated Financial Statements](index=57&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the Chuy's acquisition, segment results, debt, leases, stock-based compensation, and commitments - The acquisition of Chuy's for **$649.1 million** resulted in the recognition of **$268.4 million** in goodwill and **$198.4 million** for the trademark intangible asset[372](index=372&type=chunk)[375](index=375&type=chunk)[377](index=377&type=chunk) Long-Term Debt Components (as of May 25, 2025, in millions) | Note Description | Amount | | :--- | :--- | | 3.850% senior notes due May 2027 | $500.0 | | 4.350% senior notes due October 2027 | $400.0 | | 4.550% senior notes due October 2029 | $350.0 | | 6.300% senior notes due October 2033 | $500.0 | | Other senior notes (2035, 2037, 2048) | $439.1 | | **Total Long-Term Debt** | **$2,189.1** | Lease Liabilities (as of May 25, 2025, in millions) | Lease Type | Current Liability | Non-Current Liability | Total Liability | | :--- | :--- | :--- | :--- | | Operating Leases | $220.1 | $3,816.9 | $4,037.0 | | Finance Leases | $23.8 | $1,583.8 | $1,607.6 | | **Total** | **$243.9** | **$5,400.7** | **$5,644.6** | - Total stock-based compensation expense for fiscal 2025 was **$79.1 million**, up from **$68.5 million** in fiscal 2024[452](index=452&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=85&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting or financial disclosure matters - There were no disagreements with accountants on accounting and financial disclosure[470](index=470&type=chunk) [Controls and Procedures](index=85&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting in the last quarter - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of the end of the fiscal year[471](index=471&type=chunk) - No material changes were made to the internal control over financial reporting during the last fiscal quarter[472](index=472&type=chunk) [Other Information](index=85&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted, modified, or terminated any Rule 10b5-1 trading arrangement during the fourth quarter - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the fourth quarter[473](index=473&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=85&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 Proxy Statement - This section incorporates by reference information from the company's 2025 Proxy Statement[475](index=475&type=chunk) [Executive Compensation](index=85&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the company's 2025 Proxy Statement - This section incorporates by reference information from the company's 2025 Proxy Statement[478](index=478&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=86&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the 2025 Proxy Statement - This section incorporates by reference information from the company's 2025 Proxy Statement[479](index=479&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=86&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related party transactions and director independence is incorporated by reference from the 2025 Proxy Statement - This section incorporates by reference information from the company's 2025 Proxy Statement[480](index=480&type=chunk) [Principal Accountant Fees and Services](index=86&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the company's 2025 Proxy Statement - This section incorporates by reference information from the company's 2025 Proxy Statement[481](index=481&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=86&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists documents filed as part of the Form 10-K, including financial statements under Item 8 and an index of exhibits - All required financial statements are included in Item 8 of the report[484](index=484&type=chunk) - No financial statement schedules are filed with this report[485](index=485&type=chunk) - An index of exhibits filed as part of the Form 10-K is provided, including key agreements and compensatory plans[486](index=486&type=chunk)

Group 1: Stock Buybacks Overview - Stock buybacks are effective for boosting share prices, especially when supported by strong fundamentals [1] - Companies with healthy balance sheets are combining repurchase plans with strategic capital returns to enhance shareholder value [1] Group 2: Collegium Pharmaceuticals - Collegium Pharmaceuticals focuses on pain management and is expected to see growing revenue and improving profitability in 2025 [2] - The company has a share count reduction of 20% year-over-year in Q1 and has authorized a new $150 million share repurchase [3] - Collegium's balance sheet shows increased cash, reduced intangibles, and flat assets, resulting in improved equity and leverage [4] Group 3: Enovix - Enovix initiated a $60 million buyback plan, which is significant as it exceeds the company's 2025 revenue outlook [6] - The company is expected to experience over 300% revenue growth by 2026, supported by improving manufacturing capabilities and market demand [7] - Enovix's balance sheet indicates a solid cash position of $248 million, equal to its total liabilities, allowing for comfortable share repurchases [7][8] Group 4: Thor Industries - Thor Industries has re-authorized a $400 million buyback plan, which represents over 8% of its market cap [11][12] - The company is experiencing growth and widening margins post-pandemic, providing sufficient cash flow to sustain buybacks and dividends [13] Group 5: Darden Restaurants - Darden Restaurants announced a $1 billion share repurchase authorization, representing 3.8% of its shares, alongside a dividend increase [16] - The decision to sell Bahama Breeze is expected to provide a cash injection and allow Darden to focus on its core business [17][18] Group 6: Fifth Third Bancorp - Fifth Third Bancorp reauthorized a buyback plan worth 100 million shares, with no expiration, to reduce share count quarterly [22] - The company has a robust dividend yield of 3.36%, expected to grow at a mid-single-digit pace annually [22] - Analyst sentiment is firming, with a consensus forecast predicting a 10% upside for the stock [23]

Core Viewpoint - The article highlights two notable exceptions in dividend raises during a typically quiet period for income investors, focusing on Target and Darden Restaurants as key examples of companies increasing their dividends despite broader market trends [2]. Group 1: Target - Target has raised its quarterly dividend by nearly 2% to $1.14 per share, extending its streak of annual increases to 54 years, qualifying it as a Dividend King [4]. - The company has faced challenges, including a 3% year-over-year decline in first-quarter net sales to just under $24 billion and a significant 36% drop in non-GAAP adjusted net earnings to $1.30 per share [6]. - To address these issues, Target has established an "enterprise acceleration office" aimed at improving operational efficiency and positioning the company for growth [7]. - Online comparable sales have shown resilience, growing nearly 5% in the first quarter, indicating potential for recovery [8]. - The stock is currently undervalued with a PEG ratio slightly over 1, suggesting it may be a strong recovery opportunity [9]. - The new dividend will be paid on September 1 to investors of record as of August 13, offering a yield of 4.7% at the current share price [10]. Group 2: Darden Restaurants - Darden has increased its quarterly dividend by 7% to $1.50 per share, marking a return to regular dividend raises since cutting payouts during the pandemic [11][12]. - The company has shown strong recovery, with total sales rising by 11% year-over-year, aided by the acquisition of Chuy's Tex Mex chain, while same-restaurant sales increased by nearly 5% [14]. - Darden's non-GAAP adjusted net income grew by 9% to over $400 million, exceeding analyst estimates [14]. - For fiscal 2026, Darden anticipates total sales growth of 7% to 8% and same-restaurant sales improvement of 2% to 3.5%, with net income projected between $10.50 and $10.70 per share [15]. - The company has authorized a new stock buyback initiative of up to $1 billion, indicating a commitment to returning capital to shareholders [13]. - The raised dividend will be distributed on August 1 to stockholders of record as of July 10, yielding almost 2.8% at the most recent closing price [16].

Core Insights - Darden Restaurants, referred to as the 'Jewel of FSRs', has been performing exceptionally well recently [1] Financial Performance - Darden Restaurants concluded FY 2025 on a positive note, which began in June 2024 [1]

Core Insights - Darden Restaurants Inc. reported better-than-expected fourth-quarter financial results, with adjusted earnings per share of $2.98, surpassing the analyst consensus estimate of $2.97, and quarterly sales of $3.27 billion, exceeding the consensus estimate of $3.26 billion [1][2] Financial Performance - The company experienced a consolidated same-restaurant sales increase of 4.6%, with Olive Garden and LongHorn Steakhouse rising by 6.9% and 6.7%, respectively. However, Fine Dining saw a decline of 3.3%, while Other Business grew by 1.2% [2] - Darden expects fiscal 2026 adjusted EPS to be between $10.50 and $10.70, which is below the consensus estimate of $10.75. The company projects total sales growth of 7% to 8% for the year [3] Market Reaction - Following the earnings announcement, Darden shares fell by 5.1% to trade at $214.17 [4] Analyst Ratings and Price Targets - Analysts have made various adjustments to their price targets for Darden Restaurants: - Stephens & Co. raised the price target from $200 to $212 while maintaining an Equal-Weight rating - Baird raised the price target from $218 to $230 with a Neutral rating - Keybanc increased the price target from $230 to $245 with an Overweight rating - B of A Securities raised the price target from $252 to $253 while maintaining a Buy rating - TD Securities boosted the price target from $215 to $235 with a Hold rating - Barclays raised the price target from $235 to $255 with an Overweight rating - Citigroup increased the price target from $245 to $253 while maintaining a Buy rating [6]

Core Viewpoint - Darden Restaurants' stock price is expected to trend higher due to strong financial performance, guidance, growth prospects, dividends, and share buybacks [1][5][7]. Financial Performance - Darden Restaurants reported $3.3 billion in revenue for Q4 2025, reflecting a 10.6% increase year-over-year and surpassing consensus estimates by 120 basis points [5]. - Comparable store sales increased across major segments: Olive Garden by 6.9%, LongHorn Steakhouse by 6.7%, while Fine Dining contracted by 3.3% [5]. Margin and Capital Returns - Despite experiencing margin pressures, the company managed to maintain earnings growth, supporting a healthy balance sheet and capital return plans [6]. - The company has authorized an additional $1 billion in share buybacks, which is nearly 4% of the pre-release market capitalization [6]. Guidance and Outlook - The full-year outlook suggests high single-digit growth and substantial margins, with an expected adjusted EPS of $10.60, sufficient to cover $6 per share in dividends [7]. - Analysts maintain a Moderate Buy rating, with a projected earnings growth of 11.76% [9]. Balance Sheet Health - Darden's balance sheet shows increased cash and assets, with a 3% rise in shareholder equity and low leverage, as long-term debt is less than 1x equity [8]. Market Sentiment - Following the earnings release, Darden's stock price surged over 3%, indicating strong market sentiment and potential for further gains [10].

Core Viewpoint - Darden Restaurants has shown strong performance, with shares increasing by 46% over the past year, indicating resilience against consumer slowdown fears [1]. Company Performance - The stock of Darden Restaurants continued its upward momentum, reflecting positive market sentiment and operational strength [1]. Market Context - The restaurant chain's performance is notable in the context of broader economic concerns, suggesting effective management and strategic positioning [1].

Company Performance - Darden Restaurants Inc. reported fourth-quarter adjusted earnings per share of $2.98, exceeding the analyst consensus estimate of $2.97 [2] - The company's quarterly sales reached $3.27 billion, surpassing the analyst consensus estimate of $3.26 billion [2] - For fiscal 2026, Darden expects adjusted EPS between $10.50 and $10.70, which is below the consensus estimate of $10.75 [2] - Darden projects total sales growth of 7% to 8% for the year [2] Stock Movements - Gorilla Technology Group Inc. shares increased by 36% to $25.51 following a strong first-quarter earnings report indicating significant revenue growth and a return to profitability [8] - Couchbase, Inc. shares surged 30% to $24.69 after agreeing to be acquired by Haveli Investments for $1.5 billion [8] - Innovative Eyewear, Inc. shares rose by 81% to $4.12 after announcing a partnership with Smartech Retail Group [8] - Accenture plc shares fell by 6% to $287.53 after releasing its third-quarter results [8] - Moleculin Biotech, Inc. shares dropped 47% to $0.31 due to a $5.9 million public offering announcement [8] - Smith & Wesson Brands, Inc. shares declined by 18% to $8.89 after reporting worse-than-expected fourth-quarter EPS and sales [8]

Core Insights - Darden Restaurants, Inc. (DRI) reported strong fourth-quarter fiscal 2025 results, with earnings and revenues exceeding expectations, leading to a 4.1% increase in stock price during pre-market trading [1][8] Financial Performance - Adjusted earnings per share (EPS) for Q4 were $2.98, surpassing the Zacks Consensus Estimate of $2.96, and up from $2.65 in the prior-year quarter [2] - Total sales for the quarter reached $3,271.7 million, exceeding the consensus estimate of $3,266 million, and reflecting a 10.6% year-over-year increase, driven by a 4.6% rise in same-restaurant sales [2][8] Segment Performance - Olive Garden's sales increased by 8.1% year-over-year to $1.38 billion, with comparable sales rising 6.9% [3] - LongHorn Steakhouse saw a 9.3% year-over-year sales increase to $833.8 million, with comparable sales up 6.7% [4] - Fine Dining segment sales rose 2.3% year-over-year to $334.6 million, although comparable sales fell 3.3% [4] - Other Business segment sales surged 22.4% year-over-year to $722.3 million, with comparable sales increasing by 1.2% [5] Operating Costs - Total operating costs and expenses for Q4 increased by 12.8% year-over-year to $2.89 billion, primarily due to higher food and beverage expenses, labor costs, and marketing expenses, surpassing projections of $2.82 billion [6] Balance Sheet Highlights - As of May 25, 2025, cash and cash equivalents stood at $240 million, up from $194.8 million a year earlier [7] - Long-term debt increased to $2.13 billion from $1.37 billion year-over-year [9] Share Repurchase Program - Darden repurchased approximately 0.2 million shares worth $51 million during Q4 and authorized a new $1 billion share repurchase program on June 18, 2025, with no expiration date [10] Fiscal 2025 Overview - Total revenues for fiscal 2025 were nearly $12.08 billion, compared to $11.39 billion in fiscal 2024, with operating income rising to $1.36 billion from $1.31 billion [11] - Adjusted EPS for fiscal 2025 was $9.55, up from $8.88 in the previous year [11] Fiscal 2026 Outlook - For fiscal 2026, Darden anticipates total sales growth of 7% to 8%, with same-restaurant sales growth projected between 2% to 3.5% year-over-year [12] - Adjusted diluted EPS is expected to be in the range of $10.50 to $10.70, with plans to open 60-65 net new restaurants and total capital spending projected at $700-$750 million [12]

Sharers of Darden restaurants gaining after quarterly results this morning. Kate Rogers here with those details and some of the other names to watch in casual dining. Kate, hey Mike, good morning.A beat on the top and bottom lines for Olive Garden parent driven by same store sales gains which were up 4.6% overall. Olive Garden up 6.9% leading the pack. Its same store sales guidance was in line but EPS was slightly below consensus for the full year.Now, last week, analysts gave Darden five price target incre ...