[Fiscal 2025 Performance and 2026 Outlook](index=1&type=section&id=Darden%20Restaurants%20Reports%20Fiscal%202025%20Fourth%20Quarter%20and%20Full%20Year%20Results) [Fourth Quarter 2025 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%202025%20Financial%20Highlights) In the fourth quarter of fiscal 2025, Darden reported a 10.6% increase in total sales to $3.3 billion, driven by a 4.6% rise in same-restaurant sales and contributions from the Chuy's acquisition, with adjusted diluted net earnings per share growing by 12.5% to $2.98 Q4 2025 Key Financial Metrics | Metric | Value | YoY Change | | :--- | :--- | :--- | | Total Sales | $3.3 billion | +10.6% | | Adjusted Diluted EPS | $2.98 | +12.5% | | Reported Diluted EPS | $2.58 | 0.0% | | Blended Same-Restaurant Sales | +4.6% | N/A | Q4 2025 Same-Restaurant Sales by Brand | Brand | Same-Restaurant Sales Growth | | :--- | :--- | | Olive Garden | 6.9% | | LongHorn Steakhouse | 6.7% | | Fine Dining | (3.3)% | | Other Business | 1.2% | - Sales growth was primarily driven by a blended same-restaurant sales increase of **4.6%**, sales from the acquisition of 103 Chuy's restaurants, and 25 net new restaurants[4](index=4&type=chunk) - The company repurchased **$51 million** of its outstanding common stock during the quarter[4](index=4&type=chunk) [Full Year Fiscal 2025 Financial Highlights](index=1&type=section&id=Fiscal%202025%20Financial%20Highlights) For the full fiscal year 2025, total sales increased by 6.0% to $12.1 billion, supported by a 2.0% increase in same-restaurant sales, while adjusted diluted net earnings per share from continuing operations rose by 7.5% to $9.55 Fiscal Year 2025 Key Financial Metrics | Metric | Value | YoY Change | | :--- | :--- | :--- | | Total Sales | $12.1 billion | +6.0% | | Adjusted Diluted EPS | $9.55 | +7.5% | | Reported Diluted EPS | $8.88 | +4.1% | | Blended Same-Restaurant Sales | +2.0% | N/A | Fiscal Year 2025 Same-Restaurant Sales by Brand | Brand | Same-Restaurant Sales Growth | | :--- | :--- | | Olive Garden | 1.7% | | LongHorn Steakhouse | 5.1% | | Fine Dining | (3.0)% | | Other Business | 0.2% | - CEO Rick Cardenas stated the company had a successful year due to adherence to its strategy, anchored in four competitive advantages and being 'brilliant with the basics'[3](index=3&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) For fiscal year 2025, Olive Garden and LongHorn Steakhouse were the primary drivers of profitability, with segment profits of $1.16 billion and $582.7 million, respectively, while the 'Other Business' segment, now including Chuy's, also saw significant growth Q4 Segment Performance ($ in millions) | Segment | Q4 2025 Sales | Q4 2024 Sales | Q4 2025 Profit | Q4 2024 Profit | | :--- | :--- | :--- | :--- | :--- | | Olive Garden | $1,381.0 | $1,277.5 | $328.4 | $291.4 | | LongHorn Steakhouse | $833.8 | $762.7 | $167.8 | $147.2 | | Fine Dining | $334.6 | $327.1 | $62.9 | $64.6 | | Other Business | $722.3 | $590.0 | $126.3 | $102.5 | Annual Segment Performance ($ in millions) | Segment | FY 2025 Sales | FY 2024 Sales | FY 2025 Profit | FY 2024 Profit | | :--- | :--- | :--- | :--- | :--- | | Olive Garden | $5,212.9 | $5,067.0 | $1,163.9 | $1,117.4 | | LongHorn Steakhouse | $3,025.5 | $2,806.2 | $582.7 | $516.8 | | Fine Dining | $1,304.8 | $1,291.5 | $242.5 | $245.0 | | Other Business | $2,533.5 | $2,225.3 | $397.4 | $340.3 | - The company changed its segment profit reporting to exclude pre-opening costs starting in Q4 2025, with prior year figures recast for comparability, and sales and profits from Chuy's are included in the Other Business segment[6](index=6&type=chunk) [Shareholder Returns and Capital Allocation](index=3&type=section&id=Shareholder%20Returns%20and%20Capital%20Allocation) Darden increased its quarterly dividend by 7.1% to $1.50 per share and authorized a new $1 billion share repurchase program, underscoring its commitment to delivering 10-15% total shareholder return - The Board of Directors declared a quarterly cash dividend of **$1.50** per share, a **7.1%** increase from the previous quarter[8](index=8&type=chunk) - A new share repurchase program was authorized, allowing the company to buy back up to **$1 billion** of its common stock with no expiration date[9](index=9&type=chunk) - During Q4, the company repurchased approximately **0.2 million** shares for a total of **$51 million**[9](index=9&type=chunk) [Fiscal 2026 Financial Outlook](index=3&type=section&id=Fiscal%202026%20Financial%20Outlook) For fiscal 2026, which includes a 53rd week, Darden projects total sales growth of 7% to 8% and same-restaurant sales growth of 2% to 3.5%, anticipating diluted net EPS between $10.50 and $10.70 Fiscal 2026 Projections | Metric | Projected Value | | :--- | :--- | | Total Sales Growth | 7% to 8% | | Same-Restaurant Sales Growth | 2% to 3.5% | | New Restaurant Openings | 60 to 65 | | Diluted Net EPS | $10.50 to $10.70 | | Total Capital Spending | $700 to $750 million | | Total Inflation | 2.5% to 3.0% | | Effective Tax Rate | ~13% | - The fiscal 2026 outlook includes an extra (53rd) week, which is expected to contribute approximately **2%** to total sales growth and **$0.20** to diluted net EPS[10](index=10&type=chunk)[15](index=15&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) [Consolidated Statements of Earnings](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20EARNINGS) For the twelve months ended May 25, 2025, Darden's sales increased to $12.08 billion from $11.39 billion in the prior year, with operating income rising to $1.36 billion and earnings from continuing operations reaching $1.05 billion, or $8.88 per diluted share Annual Earnings Summary (in millions, except per share data) | Metric | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Sales | $12,076.7 | $11,390.0 | | Operating Income | $1,362.3 | $1,314.2 | | Earnings from Continuing Operations | $1,051.0 | $1,030.5 | | Diluted EPS from Continuing Operations | $8.88 | $8.53 | Q4 Earnings Summary (in millions, except per share data) | Metric | Q4 2025 | Q4 2024 | | :--- | :--- | :--- | | Sales | $3,271.7 | $2,957.3 | | Operating Income | $382.8 | $395.4 | | Earnings from Continuing Operations | $304.0 | $310.0 | | Diluted EPS from Continuing Operations | $2.58 | $2.58 | [Consolidated Balance Sheets](index=10&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of May 25, 2025, Darden's total assets grew to $12.59 billion from $11.32 billion the previous year, primarily due to increases in Goodwill, Trademarks, and property, while total liabilities also increased to $10.28 billion from $9.08 billion Balance Sheet Summary (in millions) | Account | May 25, 2025 | May 26, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $240.0 | $194.8 | | Total current assets | $937.7 | $822.8 | | Total assets | $12,587.0 | $11,323.0 | | **Liabilities & Equity** | | | | Total current liabilities | $2,247.5 | $2,192.5 | | Long-term debt | $2,128.9 | $1,370.4 | | Total liabilities | $10,275.7 | $9,080.5 | | Total stockholders' equity | $2,311.3 | $2,242.5 | [Consolidated Statements of Cash Flows](index=11&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For fiscal year 2025, net cash from operating activities increased to $1.71 billion, with $1.28 billion used in investing activities, including $613.7 million for business acquisitions, and $385.8 million used in financing activities Annual Cash Flow Summary (in millions) | Activity | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash provided by 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) | | **Increase (decrease) in cash** | **$34.4** | **$(196.1)** | - Key uses of cash in financing activities for FY 2025 included **$658.5 million** for dividends and **$418.2 million** for common stock repurchases[32](index=32&type=chunk) - Investing activities were dominated by **$644.6 million** in property and equipment purchases and **$613.7 million** used for business acquisitions[32](index=32&type=chunk) [Reconciliation of GAAP to Non-GAAP Earnings](index=6&type=section&id=Non-GAAP%20Information) The company provides non-GAAP earnings to offer a clearer understanding of its core operating results, with Q4 2025 reported diluted EPS of $2.58 adjusted to $2.98 and full fiscal year 2025 reported EPS of $8.88 adjusted to $9.55 Q4 2025 EPS Reconciliation (per share) | Item | Value | | :--- | :--- | | Reported Diluted EPS | $2.58 | | Transaction/integration costs | +$0.04 | | Impairment on restaurant disposition | +$0.30 | | Restaurant closing costs | +$0.06 | | **Adjusted Diluted EPS** | **$2.98** | Full Year 2025 EPS Reconciliation (per share) | Item | Value | | :--- | :--- | | Reported Diluted EPS | $8.88 | | Transaction/integration costs | +$0.31 | | Impairment on restaurant disposition | +$0.30 | | Restaurant closing costs | +$0.06 | | **Adjusted Diluted EPS** | **$9.55** | - Adjustments in fiscal 2025 primarily relate to Chuy's transaction costs and impairment charges for **22** underperforming restaurants that were permanently closed[22](index=22&type=chunk) [Other Information](index=4&type=section&id=Other%20Information) [Company-Owned Restaurant Count](index=8&type=section&id=NUMBER%20OF%20COMPANY-OWNED%20RESTAURANTS) As of May 25, 2025, Darden operated a total of 2,159 restaurants, an increase from 2,031 in the prior year, primarily driven by the acquisition of 108 Chuy's locations and net new openings for LongHorn Steakhouse and The Capital Grille Restaurant Count by Brand | Brand | 5/25/2025 | 5/26/2024 | | :--- | :--- | :--- | | Olive Garden | 935 | 920 | | LongHorn Steakhouse | 591 | 575 | | Chuy's | 108 | — | | The Capital Grille | 71 | 66 | | **Total Darden** | **2,159** | **2,031** | [Corporate Information](index=4&type=section&id=Corporate%20Information) Darden will host an investor conference call on June 20, 2025, to discuss its financial results, and the Annual Meeting of Shareholders will be held virtually on September 17, 2025 - The company will host an investor conference call and slide presentation on **June 20, 2025**, at **8:30 am ET**[12](index=12&type=chunk) - The Annual Meeting of Shareholders is scheduled for **September 17, 2025**, in a virtual-only format[11](index=11&type=chunk)

Core Insights - Darden Restaurants, Inc. reported strong financial results for the fourth quarter and fiscal year ended May 25, 2025, with significant growth in sales and earnings, driven by same-restaurant sales increases and acquisitions [1][3][6]. Financial Performance - Fourth Quarter 2025 consolidated sales increased by 10.6% to $3.3 billion, with same-restaurant sales up by 4.6% [2][6]. - Fiscal 2025 total sales rose by 6.0% to $12.1 billion, with same-restaurant sales growth of 2.0% [3][6]. - Reported diluted net earnings per share from continuing operations for Q4 were $2.58, while adjusted diluted net earnings per share were $2.98, reflecting a 12.5% increase [6][19]. - For the fiscal year, reported diluted net earnings per share were $8.88, with adjusted earnings at $9.55, a 7.5% increase [6][19]. Segment Performance - Olive Garden and LongHorn Steakhouse showed strong performance with same-restaurant sales growth of 6.9% and 6.7%, respectively, while Fine Dining experienced a decline of 3.3% [2][3]. - Total segment profit for Olive Garden was $328.4 million in Q4, up from $291.4 million in the previous year [5]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $1.50 per share, a 7.1% increase from the previous quarter [8]. - The company repurchased approximately 0.2 million shares for $51 million during the quarter and authorized a new share repurchase program of up to $1 billion [9]. Future Outlook - For fiscal 2026, the company anticipates total sales growth of 7% to 8%, including approximately 2% growth related to an additional 53rd week [16]. - Same-restaurant sales growth is projected to be between 2% to 3.5%, with plans to open 60 to 65 new restaurants [16].

Core Viewpoint - Darden Restaurants Inc. is expected to report strong fourth-quarter results, with analysts predicting a beat and positive guidance for fiscal year 2026, although some of this may already be reflected in the stock's performance [1][4]. Group 1: Financial Performance Expectations - Analysts from Truist Securities predict Olive Garden's same-store sales (SSS) will rise by 6.5% in the quarter, surpassing the 4.5% consensus and likely exceeding investor expectations [2]. - The fourth-quarter same-store sales estimate has been raised to +4.5% and EPS forecast to $3.02, both above the consensus estimates of +3.6% and $2.96 [3]. - For fiscal year 2026, the blended SSS forecast is increased to +3.8% and EPS to $11.05, up from +3.5% and $10.92 respectively [3]. Group 2: Strategic Focus and Market Position - Darden is likely to reaffirm its long-term goal of a 10%–15% total shareholder return, with a greater emphasis on new store openings rather than margin expansion [2]. - Olive Garden, which accounts for approximately 43% of Darden's sales, is seen as a key driver for the company's performance, benefiting from delivery growth and enhanced marketing efforts [5]. - Analysts maintain a bullish outlook on Darden, with expectations of continued earnings upside into fiscal year 2026 despite the stock's elevated price-to-earnings (P/E) multiple of 21x [4][5]. Group 3: Analyst Ratings and Price Forecasts - Truist Securities analyst Jake Bartlett has reiterated a Buy rating on Darden, raising the price forecast from $230 to $252 [8]. - Oppenheimer analyst Brian Bittner has also reiterated an Outperform rating, adjusting the price forecast from $230 to $250 [8].

Core Insights - Darden Restaurants, Inc. (DRI) is set to report its fourth-quarter fiscal 2025 results on June 20, with earnings per share (EPS) expected to be $2.96, reflecting an 11.7% increase from the previous year [1][8] - Revenue is projected at $3.26 billion, indicating a 10.3% rise compared to the same quarter last year [2][8] Factors Influencing Performance - Darden's fourth-quarter performance is anticipated to benefit from strong brand momentum, strategic menu promotions, and enhanced digital capabilities [3] - Key promotions at Olive Garden, such as the "Buy One, Take One" offer, and seasonal menu items at LongHorn Steakhouse are expected to drive customer traffic [4] - Revenue contributions from Olive Garden and LongHorn Steakhouse are predicted to increase by 6.2% and 9.9% year over year, reaching $1.4 billion and $838 million, respectively [5] Cost Considerations - The partnership with Uber Direct is likely to positively impact performance, with early trends showing check averages approximately 20% higher than traditional to-go orders [6] - However, inflationary pressures, particularly in commodity and labor costs, are expected to affect margins, with an overall inflation rate projected at 3% for the quarter [7] Earnings Prediction - The model indicates a potential earnings beat for Darden, with an Earnings ESP of +0.08% and a Zacks Rank of 3 [8][9]

Group 1 - Darden Restaurants, Inc. is set to release its fourth-quarter financial results on June 20, with expected earnings of $2.96 per share, an increase from $2.65 per share in the same quarter last year [1] - The company projects quarterly revenue of $3.26 billion, up from $2.96 billion a year earlier [1] - In the third quarter, Darden reported revenue growth of 6.2% year-on-year to $3.158 billion, which was below the analyst consensus estimate of $3.215 billion [2] Group 2 - Analyst ratings for Darden Restaurants show varied opinions, with Wells Fargo maintaining an Equal-Weight rating and increasing the price target from $200 to $225 [5] - Evercore ISI Group maintained an Outperform rating and raised the price target from $230 to $250 [5] - UBS maintained a Buy rating and boosted the price target from $225 to $245, while Jefferies upgraded the stock from Underperform to Hold and raised the price target from $165 to $210 [5]

Group 1 - Darden Restaurants (NYSE: DRI) is expected to announce its fiscal fourth-quarter earnings on June 20, 2025, with analysts predicting earnings of $2.94 per share and revenue of $3.25 billion, reflecting a 14% increase in earnings and a 10% rise in sales year-over-year [2] - In the fiscal 2025 third quarter, Darden achieved total sales of $3.2 billion, a 6.2% increase, driven by acquisitions and new restaurant openings, including the positive impact from the purchase of Chuy's [3] - Same-restaurant sales improved by 0.7%, with LongHorn Steakhouse seeing a 2.6% increase, while Olive Garden had a modest growth of 0.6%, and the Fine Dining sector experienced a decline of 0.8% [3] Group 2 - Darden reaffirmed its annual revenue forecast of $12.1 billion and adjusted its earnings outlook to a range of $9.45 to $9.52 per share [3] - The company has a current market capitalization of $25 billion, with total revenue over the past twelve months at $12 billion, operating profit at $1.4 billion, and net income at $1.1 billion [3] Group 3 - Historically, DRI stock has risen 55% of the time following earnings releases, with a median one-day increase of 5.8% and a maximum observed rise of 15% [2][5] - Over the last five years, there have been 20 earnings data points for DRI, with 11 positive and 9 negative one-day returns, resulting in positive returns approximately 55% of the time, though this percentage drops to 42% when considering the last 3 years [5]

Core Viewpoint - Darden Restaurants (DRI) is expected to report quarterly earnings of $2.93 per share, a 10.6% increase year-over-year, with revenues projected at $3.26 billion, reflecting a 10.3% increase compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.3% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Sales Projections - Analysts predict 'Sales- Olive Garden' will reach $1.35 billion, a 5.6% increase from the prior-year quarter [5]. - 'Sales- Other Business' is expected to be $733.06 million, indicating a 24.3% increase year-over-year [5]. - 'Sales- Fine Dining' is projected at $356.37 million, reflecting a 9% increase from the previous year [5]. - 'Sales- LongHorn Steakhouse' is forecasted to reach $823.83 million, an 8% year-over-year increase [6]. - The 'Same-restaurant sales - LongHorn Steakhouse - YoY change' is expected to be 5.4%, up from 4% in the same quarter last year [6]. Company-Owned Restaurants - The estimate for 'Company-owned restaurants - Total' is 2,183, compared to 2,031 a year ago [6]. - 'Company-owned restaurants - Olive Garden' is projected to reach 933, up from 920 last year [7]. - 'Company-owned restaurants - LongHorn Steakhouse' is estimated at 592, compared to 575 in the same quarter last year [7]. - 'Company-owned restaurants - Bahama Breeze' is expected to remain at 43, unchanged from the previous year [8]. - 'Company-owned restaurants - Seasons 52' is projected to reach 45, up from 44 last year [8]. - 'Company-owned restaurants - Eddie V's' is estimated at 31, compared to 30 a year ago [9]. - 'Company-owned restaurants - Yard House' is expected to reach 90, up from 88 last year [9]. Stock Performance - Over the past month, Darden Restaurants shares have recorded a return of +2.8%, outperforming the Zacks S&P 500 composite's +1.7% change [10].

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Group 1 - Darden Restaurants, Inc. plans to release its fiscal 2025 fourth quarter financial results on June 20, 2025, before the market opens [1] - A conference call will follow at 8:30 am ET, where CEO Rick Cardenas and senior management will discuss the results and conduct a Q&A session [1] - A replay of the conference call will be available shortly after the live broadcast for those unable to listen [1] Group 2 - Darden operates a diverse portfolio of restaurant brands, including Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House, among others [2] - The company emphasizes its differentiated brands as a key aspect of its business strategy [2]