Darden Earnings: DRI Q4 2025 Results
- Orlando, Florida-based Darden Restaurants (DRI) reported strong fiscal fourth-quarter results, surpassing Wall Street's expectations.
- Adjusted earnings per share reached $2.98, slightly above the expected $2.97.
- Darden's overall sales increased by 10.6% to $3.3 billion, boosted by the acquisition of 103 Chuy's Tex Mex restaurants and the opening of 25 new locations.
Darden Restaurants (DRI) served up a strong Q4 2025, exceeding revenue and earnings expectations. The restaurant giant, home to Olive Garden and LongHorn Steakhouse, reported robust same-store sales growth, with adjusted earnings per share reaching $2.98. This performance, coupled with an optimistic outlook for fiscal 2026, indicates a healthy trajectory for the dining chain. Darden projects 7-8% revenue growth, driven by strategic initiatives. News Directory 3 highlights the successful “Buy One take One” promotion at Olive Garden. However, the fine dining sector faced challenges. The company is also exploring options for Bahama breeze. What strategic moves will Darden make next? Discover what’s next …
Darden Restaurants Beats Estimates, Forecasts solid Growth
Orlando, Florida-based Darden Restaurants (DRI) reported strong fiscal fourth-quarter results, surpassing Wall Street’s expectations. The parent company of Olive Garden and LongHorn Steakhouse also issued a promising forecast for fiscal 2026, projecting continued growth in the competitive restaurant market.
Adjusted earnings per share reached $2.98, slightly above the expected $2.97. Revenue also exceeded estimates, coming in at $3.27 billion compared to the projected $3.26 billion.Net income for the quarter was $303.8 million, or $2.58 per share.
Darden’s overall sales increased by 10.6% to $3.3 billion, boosted by the acquisition of 103 Chuy’s Tex Mex restaurants and the opening of 25 new locations. Same-store sales rose by 4.6%, exceeding streetaccount estimates of 3.5%.
Looking ahead, Darden anticipates revenue growth of 7% to 8% for fiscal 2026, wich includes an approximate 2% boost from an extra week in the fiscal calendar.Adjusted earnings per share are projected to be between $10.50 and $10.70, including a 20-cent benefit from the additional week.
CEO Rick Cardenas noted that despite broader concerns about consumer spending, demand for casual dining remains strong. “Our consumers want to go out and spend their hard-earned money,” Cardenas said, adding, “And we think we’re taking some wallet share from fast food and fast casual.”
Olive Garden and LongHorn Steakhouse, two of Darden’s key brands, performed especially well. Olive Garden’s same-store sales increased by 6.9%, exceeding analysts’ expectations of 4.6%.LongHorn Steakhouse saw a 6.7% increase, surpassing the anticipated 5.3% growth.
Cardenas attributed Olive Garden’s success, in part, to the return of the “Buy One Take One” promotion, which had been absent for five years.
However, Darden’s fine dining segment, which includes Ruth’s Chris Steak House and The Capital Grille, experienced a same-store sales decline of 3.3%, compared to an expected 0.2% drop. CFO Raj Vennam noted that the fine dining category faces ongoing challenges,even though ther are signs of improvement among higher-income households.
The company’s other brands, including Cheddar’s Scratch Kitchen and Yard House, saw a 1.2% increase in same-store sales, aligning with estimates.
Cheddar’s scratch Kitchen expanded its on-demand delivery service through Uber direct,with nearly all locations now offering delivery. Darden is also evaluating “strategic alternatives” for its Bahama Breeze restaurants,perhaps including a sale or conversion to other Darden brands,as it is not considered a “strategic priority,” according to Cardenas.
Darden’s board of directors authorized a $1 billion share repurchase program, replacing the previous authorization. The company’s stock rose more than 1% following the announcement.
What’s next
darden Restaurants will focus on leveraging its strong brands and adapting to changing consumer preferences to maintain its growth trajectory in the coming year. The company’s strategic decisions regarding Bahama Breeze will also be closely watched.