01—Abstract
Summary
Summary of the 10-K filed July 18, 2025. Cited figures are marked; the original filing is the authoritative source.
Darden Restaurants, Inc. (DRI) reported robust performance for fiscal year 2025, showcasing a 6.0% increase in total sales to $12.08 billiona, 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.
02—Key points
Key Highlights
- Total sales increased by 6.0% to $12.08 billion in fiscal year 2025.
- Same-restaurant sales increased by 2.0%, indicating sustained customer demand.
- Diluted earnings per share from continuing operations rose by 4.1% to $8.88.
- Acquisition of Chuy's Holdings, Inc. contributed to growth, with 103 net new company-owned Chuy's restaurants added.
- Company plans to open 60-65 new restaurants in fiscal year 2026.
- Strong liquidity with $1.25 billion in available credit under its revolving credit facility.
- Initiated exploration of strategic alternatives for the Bahama Breeze brand and completed the sale of Olive Garden's Canadian operations.
- Dividends paid increased to $658.5 million, and share repurchases totaled $418.2 million in fiscal year 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Darden Restaurants Inc kept $0.09.
- Revenue$12.08B100.0%
- Cost of revenue−$9.60B79.5%
- Gross profit$2.47B20.5%
- Operating costs−$1.11B9.2%
- Operating income$1.36B11.3%
- Interest, other & tax−$312.7M2.6%
- Net income$1.05B8.7%
Where FY2025 revenue went
$12.08B- Cost of revenue: $9.60B, 80% of revenue
- Net income: $1.05B, 8.7% of revenue
- Operating costs: $1.11B, 9.2% of revenue
- Interest, other & tax: $312.7M, 2.6% of revenue
Kept 8.7% as net incomeNet income $1.05B · 8.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed July 18, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $12.08B$11.39B | +6.0% |
| Gross Profit | $2.47B$2.29B | +8.0% |
| Operating Expenses | $10.71B$10.08B | +6.3% |
| Operating Income | $1.36B$1.31B | +3.7% |
| Net Income | $1.05B$1.03B | +2.1% |
| EPS (Basic) | $8.93$8.57 | +4.2% |
| EPS (Diluted) | $8.86$8.51 | +4.1% |
| Shares Outstanding (Basic) | 117.50M119.90M | −2.0% |
| Shares Outstanding (Diluted) | 118.40M120.80M | −2.0% |
05—Questions
Frequently Asked Questions
What was Darden's overall financial performance in fiscal year 2025?
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.
What are Darden's key growth strategies and future outlook?
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.
How did the acquisition of Chuy's impact Darden's financial results?
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.
How is Darden managing costs and inflation?
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.
06—Continue