TLDR
- Darden stock closed at $225.78, up 1.36%, after beating earnings and revenue forecasts for fiscal Q4.
- Olive Garden and LongHorn Steakhouse posted same-store sales gains of 6.9% and 6.7%, respectively.
- Fiscal 2026 revenue growth is projected between 7% and 8%, with adjusted EPS expected between $10.50 and $10.70.
- The company announced a $1 billion share repurchase program without an expiration date.
- Darden is considering “strategic alternatives” for its Bahama Breeze brand, including possible sales or conversions.
Darden Restaurants, Inc. (NYSE: DRI) shares closed at $225.78 on June 20, 2025, rising 1.36% as the company exceeded Wall Street’s fiscal fourth-quarter earnings and revenue estimates.
Darden Restaurants, Inc. (DRI)
The parent company of Olive Garden and LongHorn Steakhouse also outlined an optimistic outlook for fiscal 2026, highlighting growth plans and a fresh $1 billion stock buyback authorization.
Strong Q4 Earnings and Revenue Performance
For the fiscal fourth quarter ended May 25, Darden reported adjusted earnings per share of $2.98, slightly beating the expected $2.97. Revenue came in at $3.27 billion, topping the forecast of $3.26 billion. This performance was driven by the addition of 103 Chuy’s Tex Mex restaurants and 25 net new openings, which contributed to a 10.6% year-over-year sales increase.
Shares of Darden Restaurants rose more than 2% to another all-time high earlier in the day after the company forecast annual same-store sales above estimates and posted strong quarterly results, banking on demand driven by food delivery and advertising https://t.co/D0vfwbaL2E pic.twitter.com/9XVU99qeKy
— Reuters (@Reuters) June 20, 2025
Same-store sales rose 4.6%, surpassing estimates of 3.5%. Olive Garden, which represents nearly 40% of Darden’s quarterly revenue, saw a 6.9% gain in same-store sales, well above the expected 4.6%. LongHorn Steakhouse posted a 6.7% rise, also beating predictions.
2026 Growth Outlook and Share Buyback
For fiscal 2026, Darden expects revenue growth of 7% to 8%, benefiting from an extra week in the fiscal year. Adjusted earnings per share are projected between $10.50 and $10.70, with 20 cents attributed to the additional week.
In a move welcomed by investors, Darden’s board authorized a $1 billion share repurchase program, replacing its previous authorization. The stock responded positively, hitting an all-time high of $228.27 during Friday’s session.
Brand Performance Highlights
Olive Garden and LongHorn Steakhouse were the primary drivers of the strong quarter, aided by the return of Olive Garden’s popular “Buy One Take One” promotion after five years. Revenue rose more than 8% to $1.38 billion at Olive Garden and 9% to $833.8 million at LongHorn.
However, Darden’s fine dining segment, which includes Ruth’s Chris Steak House and The Capital Grille, reported a same-store sales decline of 3.3%, missing expectations of a 0.2% drop. The company noted ongoing challenges in this category but highlighted improving traffic from high-income households.
Strategic Moves for Bahama Breeze and Delivery Expansion
Darden is exploring “strategic alternatives” for its Bahama Breeze chain, including a possible sale or brand conversion, after closing 15 locations in the quarter. CEO Rick Cardenas emphasized that Bahama Breeze is no longer a strategic priority for the company.
Darden Restaurants is considering “strategic alternatives” for its Bahama Breeze chain, Chief Executive Officer Rick Cardenas said https://t.co/zdeWOI0QPU
— Bloomberg (@business) June 20, 2025
Cheddar’s Scratch Kitchen expanded its on-demand delivery service nationwide via Uber Direct, with only eight locations remaining to be added. This reflects Darden’s continued push to capture demand in the casual dining market.
