Financial Data and Key Metrics Changes - The company reported total sales of $3 billion, a 10% increase compared to the previous year, driven by same restaurant sales growth of 4.7% and the acquisition of 103 Chuy's restaurants [15][16] - Adjusted diluted net earnings per share from continuing operations were $1.97, reflecting a 12.6% increase year-over-year [16] - Adjusted EBITDA reached $439 million, with a return of $358 million to shareholders through dividends and share repurchases [16][18] Business Line Data and Key Metrics Changes - Olive Garden's same restaurant sales grew by 5.9%, supported by successful marketing initiatives and first-party delivery growth [5][19] - LongHorn Steakhouse achieved same restaurant sales growth of 5.5%, maintaining a strong focus on quality and operational consistency [8][20] - The fine dining segment experienced slightly negative same restaurant sales, but Ruth's Chris Steak House's limited-time offer helped mitigate challenges [11][20] Market Data and Key Metrics Changes - The casual dining industry saw average same restaurant sales growth of 5% and guest counts up by 2.6% [4] - Olive Garden's sales momentum continued, outperforming the industry benchmark by 90 basis points [19] - The other business segment, including Yard House and Cheddar's, reported a 22.5% increase in sales, driven by the acquisition of Chuy's and positive same restaurant sales of 3.3% [21] Company Strategy and Development Direction - The company aims to leverage its competitive advantages, including significant scale and extensive data insights, to drive long-term growth [5][12] - A focus on affordability and menu innovation is evident, with Olive Garden testing lighter portion sizes to attract more guests [8][39] - The company plans to open approximately 65 new restaurants in fiscal 2026, reflecting confidence in its development pipeline [22][80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the consumer spending environment, noting strong retail sales and a positive outlook for the casual dining segment [58] - The company raised its total sales growth guidance for the year to 7.5% to 8.5%, while tightening the range for same restaurant sales growth to 2.5% to 3.5% [22] - Management acknowledged challenges with beef costs but remains confident in navigating through higher costs while maintaining pricing discipline [26][60] Other Important Information - The company is actively involved in philanthropic efforts, including supporting Feeding America with refrigerated trucks for food banks [14] - The acquisition of eight Olive Garden locations in Canada was completed, with plans to open 30 more locations over the next decade [12] Q&A Session Summary Question: Can you discuss the visibility on food cost outcomes? - Management indicated that coverage for beef is currently at 25% for the next six months, with significant price increases expected to be unsustainable [26] Question: What are the early indications of the new portion sizes at Olive Garden? - Early indications suggest a potential traffic driver, although it may slightly dilute check averages [28] Question: Can you provide a breakdown of LongHorn's comp split between traffic and ticket? - LongHorn's traffic was up 3.2%, with same restaurant sales of 5.5%, indicating a check increase of 2.3% [45] Question: How is the delivery business performing? - Delivery accounted for 5% of Olive Garden's sales in the first quarter, exiting at 4%, still 40% above pre-promotion levels [85] Question: What is the company's strategy regarding beef prices? - Management believes recent beef price spikes are not sustainable and plans to adjust pricing accordingly [26][92]

Darden Restaurants (NYSE:DRI) Q1 2026 Earnings Call September 18, 2025 08:30 AM ET Company ParticipantsCourtney Aquilla - Senior Director - Corporate Finance & IRRick Cardenas - President, CEO & DirectorRaj Vennam - SVP & CFOJon Tower - Director - Equity Research - Consumer & RestaurantsDavid Palmer - Senior MDJacob Aiken-Phillips - VP - Equity ResearchPeter Saleh - MD - RestaurantsLauren Silberman - DirectorDennis Geiger - Equity Research - RestaurantsChris O’Cull - MD - Restaurants, Franchised BusinessesB ...

Financial Data and Key Metrics Changes - The company reported total sales of $3 billion, which is 10% higher than last year, driven by same restaurant sales growth of 4.7% and the acquisition of 103 Chuy's restaurants [15][16] - Adjusted diluted net earnings per share from continuing operations were $1.97, reflecting a 12.6% increase year-over-year [16] - Adjusted EBITDA reached $439 million, with a return of $358 million to shareholders through dividends and share repurchases [16][18] Business Line Data and Key Metrics Changes - Olive Garden's same restaurant sales grew by 5.9%, supported by culinary innovations and effective marketing strategies [5][19] - LongHorn Steakhouse achieved same restaurant sales growth of 5.5%, maintaining a strong focus on quality and operational consistency [8][20] - The fine dining segment experienced slightly negative same restaurant sales, but Ruth's Chris Steak House's limited-time offer helped offset challenges [11][20] Market Data and Key Metrics Changes - The casual dining industry saw average same restaurant sales growth of 5% and guest counts increased by 2.6% [4] - Olive Garden's sales momentum continued, outperforming the industry benchmark by 90 basis points [19] - The other business segment, including Yard House and Cheddar's, reported a 22.5% increase in sales, driven by the acquisition of Chuy's and positive same restaurant sales of 3.3% [21] Company Strategy and Development Direction - The company aims to leverage its competitive advantages, including significant scale and extensive data insights, to drive long-term growth [5][12] - A focus on affordability and menu innovation is evident, with Olive Garden testing lighter portion sizes to attract more guests [8][40] - The company plans to open approximately 65 new restaurants in fiscal 2026, reflecting confidence in its development pipeline [22][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the consumer spending environment, noting that retail sales were strong and the company is ahead of expectations [58] - The company anticipates total sales growth for the year to be between 7.5% and 8.5%, with same restaurant sales growth of 2.5% to 3.5% [22] - Management acknowledged challenges with beef costs but remains optimistic about navigating through these pressures while maintaining pricing discipline [26][60] Other Important Information - The company is actively involved in philanthropic efforts, including supporting Feeding America with refrigerated trucks for food banks [14] - The acquisition of Chuy's restaurants is expected to enhance the company's market position and profitability [15][21] Q&A Session Summary Question: Can you discuss the visibility on food cost outcomes? - Management indicated that coverage for beef is currently at 25% for the next six months, with significant price increases observed, particularly in tenders and rib eyes [26] Question: What are the early indications of the new portion sizes at Olive Garden? - Early indications suggest that the new portion sizes may drive traffic, although there could be some dilution in check size [28] Question: Can you provide a breakdown of LongHorn's comp split between traffic and ticket? - LongHorn's traffic was up 3.2%, with same restaurant sales of 5.5%, indicating a check increase of 2.3% [45] Question: How is the delivery business performing? - Delivery accounted for about 5% of Olive Garden's sales in the first quarter, exiting at about 4%, still 40% above pre-promotion levels [85] Question: What is the company's outlook on consumer spending? - Management believes there have been no dramatic changes in consumer spending, with positive retail sales trends observed [58]

Financial Data and Key Metrics Changes - For Q1 2026, Darden Restaurants reported total sales of $3 billion, a 10% increase compared to the previous year, driven by same restaurant sales growth of 4.7% and the acquisition of 103 Chuy's restaurants [16][17] - Adjusted diluted net earnings per share from continuing operations were $1.97, reflecting a 12.6% increase year-over-year [17] - Adjusted EBITDA for the quarter was $439 million, with a return of $358 million to shareholders through dividends and share repurchases [17] Business Line Data and Key Metrics Changes - Olive Garden's same restaurant sales grew by 5.9%, supported by successful marketing initiatives and first-party delivery growth [5][19] - LongHorn Steakhouse achieved same restaurant sales growth of 5.5%, maintaining a strong focus on quality and operational consistency [9][19] - The other business segment, which includes brands like Yard House and Cheddar's, saw a sales increase of 22.5% due to the Chuy's acquisition and positive same restaurant sales of 3.3% [21] Market Data and Key Metrics Changes - The casual dining industry experienced average same restaurant sales growth of 5% and guest count growth of 2.6% during the quarter [4] - Darden's same restaurant sales outperformed the industry benchmark by 90 basis points, placing them in the top decile of the industry [19] Company Strategy and Development Direction - Darden continues to leverage its competitive advantages, including significant scale and extensive data insights, to drive long-term growth [5] - The company is focusing on affordability and menu innovation to attract a broader customer base, particularly through initiatives like lighter portion sizes at Olive Garden [8][9] - Darden plans to open approximately 65 new restaurants in fiscal 2026, reflecting confidence in its development pipeline [22][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the consumer spending environment, noting that sales momentum from the previous quarter continued into Q1 2026 [16][56] - The company anticipates total sales growth for the year to be between 7.5% and 8.5%, with same restaurant sales growth projected at 2.5% to 3.5% [22] - Management acknowledged challenges related to rising beef costs but emphasized a disciplined approach to pricing and cost management [22][88] Other Important Information - Darden's philanthropic efforts include supporting Feeding America by funding refrigerated trucks for food banks, highlighting the company's commitment to community engagement [15] - The company is testing a new lighter portion menu at Olive Garden, which has shown promising initial responses from guests [9] Q&A Session Summary Question: Can you discuss the visibility on food cost outcomes for the remainder of the year? - Management indicated that beef coverage is currently at 25% for the next six months, with significant price increases expected to be unsustainable [25][26] Question: What are the early indications regarding the new portion sizes at Olive Garden? - Management believes the new portion sizes may drive traffic, although it could slightly dilute check averages [27][28] Question: How did the affordability pivot and UberDirect impact costs during the quarter? - Management noted that the segment profit margin was only down 10 basis points, indicating strong business model resilience despite cost pressures [30][31] Question: What is the outlook for casual dining performance? - Management believes casual dining is performing well due to lower pricing compared to other dining segments, with a focus on value and connection [39][40] Question: How is the delivery business performing? - Delivery accounted for about 5% of Olive Garden's sales in Q1, with a strong exit rate post-promotion [80] Question: What are the dynamics driving recent beef price increases? - Supply constraints due to packer cutbacks and import issues are driving prices higher, but management believes these levels are not sustainable [86][88]

Earnings Performance - Darden Restaurants reported quarterly earnings of $1.97 per share, missing the Zacks Consensus Estimate of $2 per share, but showing an increase from $1.75 per share a year ago, representing an earnings surprise of -1.50% [1] - The company posted revenues of $3.04 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 0.17%, and an increase from year-ago revenues of $2.76 billion [2] Stock Performance and Outlook - Darden Restaurants shares have increased approximately 11.8% since the beginning of the year, compared to the S&P 500's gain of 12.2% [3] - The current consensus EPS estimate for the upcoming quarter is $2.20 on revenues of $3.08 billion, and for the current fiscal year, it is $10.64 on revenues of $13.08 billion [7] Industry Context - The Retail - Restaurants industry, to which Darden Restaurants belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Earnings Call Fiscal 2026: First Quarter Results September 18, 2025 Disclaimer/Non-GAAP Information IMPORTANT NOTICE The following slides are part of a presentation by Darden Restaurants, Inc. (the "Company") and are intended to be viewed as part of that presentation (the "Presentation"). No representation is made that the Presentation is a complete description of the Company's performance, financial condition or outlook. Forward-looking statements in this communication regarding our expected earnings perfo ...

Darden Restaurants shares dropped after adjusted earnings per share missed expectations. Same-store sales growth for Olive Garden also came in below consensus estimates. https://t.co/Nf2sgIsF4b ...

Core Insights - Darden Restaurants reported mixed quarterly results, with Olive Garden and LongHorn Steakhouse performing well, offsetting weaknesses in the fine-dining segment [1] - The company raised its full-year revenue growth forecast while maintaining its earnings projections, leading to a 6% drop in shares during premarket trading [1] Financial Performance - Darden's fiscal first-quarter net income was $257.8 million, or $2.19 per share, an increase from $207.2 million, or $1.74 per share, year-over-year [2] - Adjusted earnings per share, excluding certain gains and costs, were $1.97, slightly below the expected $2 [5] Sales and Growth Metrics - Net sales increased by 10.4% to $3.04 billion, driven by the acquisition of Chuy's Tex Mex restaurants [3] - Same-store sales rose by 4.7% in the quarter, not including Chuy's or Bahama Breeze locations, which are expected to be divested [3] Future Projections - For fiscal 2026, Darden projects revenue growth of 7.5% to 8.5%, an increase from the previous forecast of 7% to 8% [4] - The company reiterated its adjusted earnings forecast in the range of $10.50 to $10.70 per share [4]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Darden Restaurants reported strong Q1 2026 results with increased sales and EPS, alongside an updated positive fiscal 2026 outlook [Q1 2026 Performance Overview](index=1&type=section&id=Q1%202026%20Performance%20Overview) Darden reported a strong Q1 2026, with total sales up 10.4% to $3.0 billion and blended same-restaurant sales increasing by 4.7% | Metric | Q1 2026 Performance | | :-------------------------- | :------------------ | | Total Sales Increase | 10.4% | | Total Sales Value | $3.0 billion | | Blended Same-Restaurant Sales Increase | 4.7% | | Same-Restaurant Sales | Growth Rate | | :-------------------- | :---------- | | Consolidated Darden | 4.7% | | Olive Garden | 5.9% | | LongHorn Steakhouse | 5.5% | | Fine Dining | (0.2)% | | Other Business | 3.3% | - The strength of results is attributed to the company's strategy, focusing on "**being brilliant with the basics**" and leveraging **competitive advantages** to position brands for long-term success, enabling sales and market share growth while investing in the business and returning capital to shareholders[3](index=3&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Segment profit reporting was adjusted to exclude pre-opening costs, with 'Other Business' showing significant sales and profit growth - Segment profit reporting changed to exclude pre-opening costs, with fiscal 2025 figures recast for comparability. Segment profit is defined as sales less costs for food and beverage, restaurant labor, restaurant expenses, and marketing expenses, excluding non-cash real estate related expenses[4](index=4&type=chunk) | ($ in millions) | Q1 2026 Sales | Q1 2025 Sales | Q1 2026 Segment Profit | Q1 2025 Segment Profit | | :---------------- | :------------ | :------------ | :--------------------- | :--------------------- | | Consolidated Darden | $3,044.7 | $2,757.0 | | | | Olive Garden | $1,301.1 | $1,209.1 | $267.6 | $250.1 | | LongHorn Steakhouse | $776.4 | $713.5 | $134.9 | $128.4 | | Fine Dining | $286.5 | $278.9 | $38.7 | $38.9 | | Other Business | $680.7 | $555.5 | $109.3 | $84.3 | [Earnings Per Share & Shareholder Returns](index=1&type=section&id=Earnings%20Per%20Share%20%26%20Shareholder%20Returns) Diluted net EPS reached $2.19, with adjusted EPS up 12.6% to $1.97, alongside a $1.50 quarterly dividend and $183 million in share repurchases | Metric | Value | | :------------------------------------------------ | :---- | | Reported diluted net earnings per share (continuing operations) | $2.19 | | Adjusted diluted net earnings per share (continuing operations) | $1.97 | | Adjusted EPS Increase (YoY) | 12.6% | - The Board of Directors declared a quarterly cash dividend of **$1.50 per share**, payable on November 3, 2025, to shareholders of record on October 10, 2025[8](index=8&type=chunk) - The Company repurchased approximately **0.9 million shares** of its common stock for a total of **$183 million** during the quarter. As of the end of the fiscal first quarter, **$865 million** remained under the current **$1 billion** repurchase authorization[6](index=6&type=chunk)[9](index=9&type=chunk) [Fiscal 2026 Financial Outlook](index=3&type=section&id=Fiscal%202026%20Financial%20Outlook) Darden updated its fiscal 2026 outlook, projecting total sales growth of 7.5-8.5% and adjusted diluted net EPS of $10.50-$10.70 [Updated Outlook Details](index=3&type=section&id=Updated%20Outlook%20Details) The fiscal 2026 outlook projects total sales growth of 7.5-8.5%, same-restaurant sales growth of 2.5-3.5%, and adjusted diluted net EPS of $10.50-$10.70 | Metric | Fiscal 2026 Outlook | | :------------------------------------------------ | :------------------ | | Total sales growth | 7.5% to 8.5% | | Same-restaurant sales growth | 2.5% to 3.5% | | New restaurant openings | Approximately 65 | | Total capital spending | $700 to $750 million | | Total inflation | 3.0% to 3.5% | | Effective tax rate | Approximately 13% | | Adjusted diluted net earnings per share (continuing operations) | $10.50 to $10.70 | | Weighted average diluted shares outstanding | Approximately 117 million | - The total sales growth outlook includes approximately **2% growth** related to the 53rd week. The adjusted diluted net earnings per share outlook includes approximately **$0.20** related to the addition of the 53rd week[14](index=14&type=chunk) [Reconciliation of Adjusted Earnings Outlook](index=7&type=section&id=Reconciliation%20of%20Adjusted%20Earnings%20Outlook) A reconciliation details fiscal 2026 adjusted diluted net EPS outlook, accounting for Chuy's transaction costs, closed restaurant costs, and Olive Garden Canada sale gain | Reconciliation Item | 2026 Outlook Range | | :------------------------------------------------ | :----------------- | | Reported diluted net earnings per share from continuing operations | $10.64 to $10.84 | | Chuy's transaction and integration related costs | $0.06 | | Closed restaurants costs | $0.06 | | Gain on Olive Garden Canada sale | $(0.26) | | Adjusted diluted net earnings per share from continuing operations | $10.50 to $10.70 | [Company Information](index=3&type=section&id=Company%20Information) Darden Restaurants operates a diverse portfolio of restaurant brands and provides important disclosures regarding forward-looking statements [About Darden Restaurants](index=3&type=section&id=About%20Darden%20Restaurants) Darden Restaurants is a restaurant company with a diverse portfolio of differentiated brands, including well-known names like Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House, among others - Darden's portfolio of differentiated brands includes Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Chuy's, Seasons 52, Eddie V's, and Bahama Breeze[12](index=12&type=chunk) [Information About Forward-Looking Statements](index=5&type=section&id=Information%20About%20Forward-Looking%20Statements) Forward-looking statements are subject to risks and uncertainties, detailed in SEC filings, cautioning investors against undue reliance due to potential material differences - Forward-looking statements are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of their initial date, with no obligation to update[13](index=13&type=chunk) - Risks and uncertainties include cost pressures, economic factors impacting the restaurant industry, labor challenges, increased costs, health concerns, cybersecurity risks, integration challenges (Chuy's), regulatory changes, intense competition, changing consumer preferences, climate change, supply chain disruptions, and litigation[13](index=13&type=chunk)[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) Darden utilizes non-GAAP financial measures, such as adjusted diluted net EPS, to supplement GAAP results for performance analysis [Explanation of Non-GAAP Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures, like adjusted diluted net EPS, offer supplemental performance insights but are not GAAP substitutes and may not be comparable - Non-GAAP measures, like **adjusted diluted net earnings per share**, are used by management for performance analysis and provide useful supplemental information for understanding operating results[17](index=17&type=chunk) - These non-GAAP disclosures should not be viewed as a substitute for GAAP operating results and may not be comparable to non-GAAP measures presented by other companies[17](index=17&type=chunk) [Q1 Reported to Adjusted Earnings Reconciliation](index=5&type=section&id=Q1%20Reported%20to%20Adjusted%20Earnings%20Reconciliation) This reconciliation details Q1 2026 and Q1 2025 earnings adjustments, including acquisition costs, closed restaurant costs, and Olive Garden Canada sale gain | $ in millions, except per share amounts | Q1 2026 Reported | Q1 2026 Adjustments | Q1 2026 Adjusted | Q1 2025 Reported | Q1 2025 Adjustments | Q1 2025 Adjusted | | :-------------------------------------- | :--------------- | :------------------ | :--------------- | :--------------- | :------------------ | :--------------- | | Earnings Before Income Tax | $293.8 | $(35.3) | $258.5 | $232.1 | $1.5 | $233.6 | | Income Tax Expense | $35.9 | $(8.8) | $27.1 | $24.5 | $0.3 | $24.8 | | Net Earnings | $257.9 | $(26.5) | $231.4 | $207.6 | $1.2 | $208.8 | | Diluted Net Earnings Per Share | $2.19 | $(0.22) | $1.97 | $1.74 | $0.01 | $1.75 | | % Change vs Prior Year | 25.9% | | 12.6% | | | | | **Adjustments Detail:** | | | | | | | | Acquisition transaction and integration related costs | | $3.6 (EBIT) / $2.7 (Net) / $0.02 (EPS) | | | $1.5 (EBIT) / $1.2 (Net) / $0.01 (EPS) | | | Closed restaurants | | $3.1 (EBIT) / $2.3 (Net) / $0.02 (EPS) | | | — | | | Gain on Olive Garden Canada sale | | $(42.0) (EBIT) / $(31.5) (Net) / $(0.26) (EPS) | | | — | | [Restaurant Portfolio](index=7&type=section&id=Restaurant%20Portfolio) Darden's restaurant portfolio expanded, increasing total company-owned restaurants from 2,040 to 2,165 by August 2025 [Number of Company-Owned Restaurants](index=7&type=section&id=Number%20of%20Company-Owned%20Restaurants) Darden's restaurant portfolio shows an increase in total company-owned restaurants from 2,040 in August 2024 to 2,165 in August 2025, primarily driven by the addition of Chuy's restaurants and growth in Olive Garden and LongHorn Steakhouse | Brand | 8/24/2025 | 8/25/2024 | | :---------------------- | :-------- | :-------- | | Olive Garden | 933 | 923 | | LongHorn Steakhouse | 595 | 577 | | Cheddar's Scratch Kitchen | 182 | 181 | | Chuy's | 108 | — | | Yard House | 89 | 88 | | Ruth's Chris Steak House | 82 | 82 | | The Capital Grille | 73 | 68 | | Seasons 52 | 43 | 44 | | Eddie V's | 29 | 29 | | Bahama Breeze | 28 | 44 | | The Capital Burger | 3 | 4 | | **Darden Continuing Operations** | **2,165** | **2,040** | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements reflect strong Q1 2026 performance with increased sales, operating income, and cash flow [Consolidated Statements of Earnings](index=8&type=section&id=Consolidated%20Statements%20of%20Earnings) The consolidated statements of earnings show a significant increase in sales and net earnings for the three months ended August 24, 2025, compared to the prior year. Operating income grew substantially, and diluted net earnings per share from continuing operations rose from $1.74 to $2.19 | (In millions, except per share data) | Three Months Ended 8/24/2025 | Three Months Ended 8/25/2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Sales | $3,044.7 | $2,757.0 | | Total operating costs and expenses | $2,705.5 | $2,487.8 | | Operating income | $339.2 | $269.2 | | Earnings before income taxes | $293.8 | $232.1 | | Income tax expense | $35.9 | $24.5 | | Earnings from continuing operations | $257.9 | $207.6 | | Net earnings | $257.8 | $207.2 | | Diluted net earnings per share (continuing operations) | $2.19 | $1.74 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet as of August 24, 2025, shows an increase in total assets to $12,759.6 million from $12,587.0 million at May 25, 2025. Total liabilities also increased, while total stockholders' equity saw a slight decrease | (In millions) | 8/24/2025 (Unaudited) | 5/25/2025 | | :-------------------------------- | :-------------------- | :-------- | | **ASSETS** | | | | Total current assets | $932.8 | $937.7 | | Land, buildings and equipment, net | $4,826.6 | $4,716.0 | | Operating lease right-of-use assets | $3,608.0 | $3,555.9 | | Goodwill | $1,658.2 | $1,659.4 | | Trademarks | $1,346.4 | $1,346.4 | | Other assets | $387.6 | $371.6 | | **Total assets** | **$12,759.6** | **$12,587.0** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | $2,346.8 | $2,247.5 | | Long-term debt | $2,135.1 | $2,128.9 | | Operating lease liabilities - non-current | $3,878.3 | $3,816.9 | | Other liabilities | $1,840.8 | $1,803.6 | | **Total liabilities** | **$10,534.0** | **$10,275.7** | | Total stockholders' equity | $2,225.6 | $2,311.3 | | **Total liabilities and stockholders' equity** | **$12,759.6** | **$12,587.0** | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows indicate that net cash provided by operating activities of continuing operations increased to $342.5 million for the three months ended August 24, 2025. However, net cash used in financing activities also increased significantly, leading to a decrease in cash and cash equivalents | (In millions) | Three Months Ended 8/24/2025 | Three Months Ended 8/25/2024 | | :------------------------------------------------ | :--------------------------- | :--------------------------- | | Net cash provided by operating activities of continuing operations | $342.5 | $273.2 | | Net cash used in investing activities of continuing operations | $(159.3) | $(149.7) | | Net cash used in financing activities of continuing operations | $(212.2) | $(126.7) | | Increase (decrease) in cash, cash equivalents, and restricted cash | $(29.0) | $(3.2) | | Cash, cash equivalents, and restricted cash - end of period | $225.5 | $216.9 |

Core Insights - Darden Restaurants, Inc. reported strong financial results for the first quarter of fiscal 2026, with total sales increasing by 10.4% to $3.0 billion, driven by a same-restaurant sales increase of 4.7% and contributions from acquisitions [2][6][7]. Financial Performance - Consolidated sales for Q1 2026 were $3,044.7 million, compared to $2,757.0 million in Q1 2025, reflecting a growth of 10.4% [4]. - Same-restaurant sales growth was reported at 4.7%, with Olive Garden and LongHorn Steakhouse showing increases of 5.9% and 5.5%, respectively [2][4]. - Adjusted diluted net earnings per share from continuing operations increased by 12.6% to $1.97, up from $1.75 in the prior year [7][19]. Segment Performance - Olive Garden generated sales of $1,301.1 million in Q1 2026, with a segment profit of $267.6 million, compared to $1,209.1 million and $250.1 million in Q1 2025 [4]. - LongHorn Steakhouse reported sales of $776.4 million and a segment profit of $134.9 million, up from $713.5 million and $128.4 million, respectively [4]. - The Fine Dining segment experienced a slight decline in profit, with a segment profit of $38.7 million compared to $38.9 million in the previous year [4]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $1.50 per share, payable on November 3, 2025 [5]. - During the quarter, the company repurchased approximately 0.9 million shares for a total of $183 million, with $865 million remaining under the current $1 billion repurchase authorization [8][7]. Future Outlook - The company updated its full-year financial outlook for fiscal 2026, projecting total sales growth of 7.5% to 8.5%, including approximately 2% growth related to the addition of a 53rd week [14]. - Same-restaurant sales growth is expected to be between 2.5% to 3.5%, with plans to open approximately 65 new restaurants [14].