10-KPeriod: FY2025

DARDEN RESTAURANTS INC Annual Report, Year Ended May 25, 2025

Filed July 18, 2025For Securities:DRI

Summary

Darden Restaurants, Inc. (DRI) reported robust performance for fiscal year 2025, showcasing a 6.0% increase in total sales to $12.08 billion, driven by a 2.0% same-restaurant sales growth and strategic acquisitions, most notably Chuy's Holdings, Inc. Diluted earnings per share from continuing operations saw a 4.1% rise to $8.88. The company's diversified brand portfolio, including Olive Garden and LongHorn Steakhouse, continues to be a key driver of growth, with plans for further expansion in fiscal year 2026, targeting 60-65 new restaurant openings. Financially, DRI maintained a strong liquidity position with significant operating cash flow and access to a substantial revolving credit facility. The company also continued its commitment to shareholder returns through dividends and share repurchases. Strategic initiatives such as exploring alternatives for the Bahama Breeze brand and divesting Canadian Olive Garden locations indicate a focus on optimizing the brand portfolio for future profitability and growth. The company also successfully managed inflationary pressures, with a slight decrease in food and beverage costs as a percentage of sales.

Financial Highlights

50 data points
Beta

Revenue

$12.08B

20.5% Gross Margin

Net Income

$1.05B

8.7% Net Margin

EPS (Diluted)

$8.86

Total Assets

$12.59B

Cash & Equivalents

$240.00M

Free Cash Flow

$1.06B

Financial Statements
Beta
Revenue$12.08B
Gross Profit$2.47B
Operating Expenses$10.71B
Operating Income$1.36B
Net Income$1.05B
EPS (Basic)$8.93
EPS (Diluted)$8.86
Shares Outstanding (Basic)117.50M
Shares Outstanding (Diluted)118.40M

Key Highlights

  • 1Total sales increased by 6.0% to $12.08 billion in fiscal year 2025.
  • 2Same-restaurant sales increased by 2.0%, indicating sustained customer demand.
  • 3Diluted earnings per share from continuing operations rose by 4.1% to $8.88.
  • 4Acquisition of Chuy's Holdings, Inc. contributed to growth, with 103 net new company-owned Chuy's restaurants added.
  • 5Company plans to open 60-65 new restaurants in fiscal year 2026.
  • 6Strong liquidity with $1.25 billion in available credit under its revolving credit facility.
  • 7Initiated exploration of strategic alternatives for the Bahama Breeze brand and completed the sale of Olive Garden's Canadian operations.
  • 8Dividends paid increased to $658.5 million, and share repurchases totaled $418.2 million in fiscal year 2025.

Frequently Asked Questions

In fiscal year 2025, Darden Restaurants, Inc. reported a 6.0% increase in total sales to $12.08 billion, a 2.0% rise in same-restaurant sales, and a 4.1% increase in diluted earnings per share from continuing operations to $8.88. The company demonstrated robust financial health with strong operating cash flow and a solid balance sheet.

Darden's growth is driven by strengthening its core brands, opening new restaurants, and strategic acquisitions. For fiscal year 2026, the company plans to open 60-65 new restaurants. Additionally, Darden is actively exploring strategic alternatives for its Bahama Breeze brand and has recently completed the sale of its Olive Garden Canadian restaurants, signaling a focus on optimizing its brand portfolio.

The acquisition of Chuy's Holdings, Inc., completed in October 2024, contributed to Darden's fiscal year 2025 results by adding 103 net company-owned Chuy's restaurants. This acquisition is part of Darden's strategy to expand its brand portfolio and drive overall sales growth.

Darden has successfully navigated inflationary pressures, with food and beverage costs decreasing as a percentage of sales primarily due to pricing leverage and cost savings initiatives. Labor and restaurant expenses saw increases as a percentage of sales, partly due to inflation, but were mitigated by sales leverage and productivity improvements.