Summary
Darden Restaurants, Inc. reported a strong first quarter for fiscal year 2026, with total sales increasing by 10.4% to $3.04 billion year-over-year. This growth was driven by a combination of new restaurant openings, including the significant acquisition of Chuy's in the prior quarter, and a healthy same-restaurant sales increase of 4.7%. Net earnings from continuing operations rose by 24.2% to $257.9 million, translating to a diluted EPS of $2.19, up from $1.74 in the prior year. The company is strategically divesting certain assets, evidenced by the sale of eight Olive Garden locations in Canada, and exploring strategic alternatives for the Bahama Breeze brand. Darden also provided a positive outlook for the full fiscal year 2026, projecting sales growth between 7.5% and 8.5%, with continued same-restaurant sales growth expected, supported by approximately 65 new restaurant openings.
Financial Highlights
44 data points| Revenue | $3.04B |
| Gross Profit | $574.30M |
| Operating Expenses | $2.71B |
| Operating Income | $339.20M |
| Net Income | $257.80M |
| EPS (Basic) | $2.21 |
| EPS (Diluted) | $2.19 |
| Shares Outstanding (Basic) | 116.70M |
| Shares Outstanding (Diluted) | 117.60M |
Key Highlights
- 1Total sales grew 10.4% to $3.04 billion, driven by new units and a 4.7% same-restaurant sales increase.
- 2Net earnings from continuing operations increased 24.2% to $257.9 million.
- 3Diluted EPS from continuing operations was $2.19, a 25.9% increase year-over-year.
- 4The company completed the acquisition of 103 Chuy's restaurants, contributing to growth in the 'Other Business' segment.
- 5Strategic divestiture of eight Olive Garden Canada locations was completed, generating a gain on disposal.
- 6Darden is exploring strategic alternatives for the Bahama Breeze brand.
- 7Full fiscal year 2026 sales growth is projected between 7.5% and 8.5%, with same-restaurant sales growth expected between 2.5% and 3.5%.