10-KPeriod: FY2026

DARDEN RESTAURANTS INC Annual Report, Year Ended May 31, 2026

Filed July 24, 2026For Securities:DRI

Summary

Darden Restaurants, Inc. (DRI) reported strong performance in fiscal year 2026, with total sales reaching $13.21 billion, a 9.4% increase from the previous year. This growth was driven by a combination of a 53-week fiscal year, a 4.5% increase in same-restaurant sales across its major brands, and the addition of 43 net new restaurants. Diluted earnings per share from continuing operations saw a significant rise of 17.6% to $10.44. The company successfully managed its cost structure, with operating income increasing by 16.2%. Key strategic initiatives included the sale of eight Olive Garden restaurants in Canada and the decision to close approximately half of its Bahama Breeze locations, with plans to convert the remainder to other Darden brands. The company also completed the integration of its acquisition of Chuy’s. Looking ahead, Darden projects fiscal year 2027 sales between $13.60 billion and $13.75 billion, driven by continued same-restaurant sales growth and the opening of 75-80 new restaurants.

Key Highlights

  • 1Total sales increased by 9.4% to $13.21 billion in fiscal year 2026.
  • 2Diluted earnings per share from continuing operations grew by 17.6% to $10.44.
  • 3Same-restaurant sales increased by 4.5% on a blended basis across key brands.
  • 4Darden added 43 net new restaurants in fiscal year 2026, with plans for 75-80 new openings in fiscal year 2027.
  • 5The company divested eight Olive Garden restaurants in Canada and is strategically repositioning its Bahama Breeze brand.
  • 6The acquisition of Chuy’s was fully integrated, contributing to the 'Other Business' segment growth.
  • 7Darden maintained strong operational performance with a 16.2% increase in operating income.

Frequently Asked Questions

Darden's sales growth in fiscal year 2026 was driven by three main factors: the inclusion of an extra week in the fiscal year, a solid 4.5% increase in same-restaurant sales across its core brands, and the net addition of 43 new restaurants to its portfolio.

Darden has made a strategic decision to permanently close approximately half of its Bahama Breeze restaurants and plans to convert the remaining locations to other Darden brands over the next 12-18 months. This initiative aims to optimize the performance and resource allocation within its brand portfolio.

For fiscal year 2027, Darden anticipates total sales in the range of $13.60 billion to $13.75 billion. This forecast is supported by an expected same-restaurant sales growth of 2.5% to 3.5% and the planned opening of 75 to 80 new restaurants.

Darden completed the acquisition of Chuy's in October 2024 and has since fully integrated its operations. The acquisition contributed to the 'Other Business' segment and, while there were integration costs in fiscal 2025 and 2026, the brand is now fully part of Darden's operational structure.