Darden Restaurants Reports Fiscal 2025 Fourth Quarter and Full Year Results; Increases Quarterly Dividend; Authorizes New $1 Billion Share Repurchase Program; And Provides Fiscal 2026 Outlook

Darden Restaurants, Inc. (NYSE:DRI) today reported its financial results for the fourth quarter and fiscal year ended May 25, 2025. Fourth Quarter 2025 Financial Highlights Total sales increased 10.6% to $3.3 billion driven by a blended same-restaurant sales1 increase of 4.6% and sales from the acquisition of 103 Chuy's Tex Mex (Chuy's) restaurants and 25 net new restaurants Same-restaurant sales: Consolidated Darden1 4.6 % Olive Garden 6.9 % LongHorn Steakhouse 6.7 % Fine Dining (3.3) % Other Business1 1.2 % Reported diluted net earnings per share from continuing operations were $2.58 Excluding $0.40 of Chuy's transaction and integration related costs and costs from restaurant closures, adjusted diluted net earnings per share from continuing operations were $2.98, an increase of 12.5%3 The Company repurchased $51 million of its outstanding common stock Fiscal 2025 Financial Highlights Total sales increased 6.0% to $12.1 billion driven by a blended same-restaurant sales1, 2 increase of 2.0% and sales from the acquisition of 103 Chuy's restaurants and 25 net new restaurants Same-restaurant sales: Consolidated Darden1, 2 2.0 % Olive Garden 1.7 % LongHorn Steakhouse 5.1 % Fine Dining2 (3.0) % Other Business1 0.2 % Reported diluted net earnings per share from continuing operations were $8.88 Excluding $0.67 of Chuy's transaction and integration related costs and costs from restaurant closures, adjusted diluted net earnings per share from continuing operations were $9.55, an increase of 7.5%
"We had a strong quarter with same-restaurant sales and earnings growth that exceeded our expectations," said Darden President & CEO Rick Cardenas. "Our adherence to our winning strategy, anchored in our four competitive advantages and being brilliant with the basics, led to a successful year. Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value." 1 Will not include Chuy's until they have been owned and operated by Darden for a 16-month period (Q4 Fiscal 2026) 2 Does not include Ruth's Chris as they were not owned and operated by Darden for a 16-month period at the beginning of Fiscal 2025 3 See the "Non-GAAP Information" below for more details Segment PerformanceDuring the fourth quarter of fiscal 2025, the Company changed its reporting of segment profit to exclude pre-opening costs. Fiscal 2024 figures were recast for comparability. Segment profit represents sales, less costs for food and beverage, restaurant labor, restaurant expenses and marketing expenses. Segment profit excludes non-cash real estate related expenses. Sales and profits from Chuy's restaurants are included within the Other Business segment from the date of acquisition forward.
Q4 Sales Q4 Segment Profit ($ in millions) 2025 2024 2025 2024 Consolidated Darden $3,271.7 $2,957.3 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 $102.5 Annual Sales Annual Segment Profit ($ in millions) 2025 2024 2025 2024 Consolidated Darden $12,076.7 $11,390.0 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
Dividend Declared
Darden's Board of Directors declared a quarterly cash dividend of $1.50 per share on the Company's outstanding common stock, a 7.1% increase from third quarter fiscal 2025. The dividend is payable on August 1, 2025 to shareholders of record at the close of business on July 10, 2025.
Share Repurchase Program
During the quarter, the Company repurchased approximately 0.2 million shares of its common stock for a total of $51 million. In addition, on Wednesday, June 18, 2025, Darden's Board of Directors authorized a new share repurchase program under which the Company may repurchase up to $1 billion of its outstanding common stock. This repurchase program does not have an expiration and replaces the previously existing share repurchase authorization. "Our long-term framework calls for 10-15% Total Shareholder Return over time," said Darden CFO Raj Vennam. "Over our 30-year history as a public company, Darden has achieved an annualized total shareholder return of 10% or greater over any 10 fiscal-year period. This level of performance reflects the strength of our operating model and the durability of the cash flows it generates." Fiscal 2026 Financial Outlook
Below is the full year financial outlook for fiscal 2026, which includes a 53rd week. This outlook includes the impact of the additional week. We will provide more details during our investor conference call scheduled for this morning at 8:30 am ET. Total sales growth of 7% to 8%, including approximately 2% growth related to the 53rd week Same-restaurant sales4 growth of 2% to 3.5% New restaurant openings of 60 to 65 Total capital spending of $700 to $750 million Total inflation of 2.5% to 3.0% An effective tax rate of approximately 13% Diluted net earnings per share from continuing operations of $10.50 to $10.70, including: Approximately $0.20 related to the addition of the 53rd week Approximately 117 million weighted average diluted shares outstanding 4 Annual same-restaurant sales is a 52-week metric and excludes the impact of Chuy's, which will not have been owned and operated by Darden for a 16-month period prior to the beginning of Fiscal 2026, as well as any additional locations not expected to be operated by Darden for the entirety of the fiscal year. Annual Meeting of ShareholdersDarden will hold its Annual Meeting of Shareholders on September 17, 2025. The meeting will be held in a virtual format only. The record date for shareholders to vote in the Annual Meeting is July 23, 2025.... Read more

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