How much of the sales growth was organic versus driven by the 53rd week?

Q4 sales growth of 13.7% included 7.6 percentage points from the extra week, so underlying growth was roughly 6%. The blended same-restaurant sales increase of 4.6% and contributions from 43 net new restaurants account for the rest. For the full year, the extra week added 2.1 points to the 9.4% sales growth.

Why is adjusted EPS meaningfully higher than reported EPS?

Adjustments primarily add back restaurant closure and impairment charges, Chuy's integration costs, and strategic review costs related to Bahama Breeze. For the full year, reported diluted EPS from continuing operations was $10.44 versus $10.64 adjusted, and a $0.27 gain from the Olive Garden Canada sale was excluded from the adjusted figure. Investors should weigh the recurring nature of some of these add-backs when judging earnings quality.

What does the new $1.5 billion buyback and higher dividend signal about capital allocation?

The board is returning cash at a higher pace while still funding growth. With a 1.5 billion authorization against roughly 114 million diluted shares, the program is meaningful, but the company has recently paid out about $693 million in dividends and $672 million in buybacks, which together consume most of its operating cash flow after capex. Continued shareholder returns depend on sustaining cash generation and keeping leverage in check.

What are the key risks in the fiscal 2027 outlook?

Guidance assumes same-restaurant sales growth of 2.5% to 3.5%, which is below fiscal 2026's 4.5%, and inflation of about 3%. Margin pressure from labor, food, and restaurant expenses could erode EPS growth. Higher interest expense and the need to refinance $693.6 million of short-term debt are additional considerations. The guidance also depends on continued execution at Olive Garden and LongHorn and on the planned wind-down of Bahama Breeze.

Are the Bylaw amendments material to shareholders?

The amendments are primarily administrative. They raise the number of shareholders who may aggregate holdings to meet director nomination ownership thresholds from 10 to 20, align nomination procedures with the SEC's universal proxy rule (Rule 14a-19), update notice provisions, and remove obsolete text. They do not appear to change shareholder economics, though the higher aggregation limit makes it somewhat easier for groups of shareholders to nominate directors.

DRI 8-K: Earnings & Results & Corporate Changes

01—Abstract

Summary

Summary of the 8-K filed June 25, 2026. Cited figures are marked; the original filing is the authoritative source.

Darden Restaurants reported fiscal 2026 fourth-quarter and full-year results for the period ended May 31, 2026, a 53-week year versus 52 weeks in the prior year.

Q4 total sales rose 13.7% to $3.72 billion^a, with the extra week contributing 7.6% of that growth and blended same-restaurant sales up 4.6%. Adjusted diluted EPS from continuing operations was $3.66, up 22.8%. For the full year, sales grew 9.4% to $13.21 billion, same-restaurant sales rose 4.5%, and adjusted diluted EPS reached $10.64, up 11.4%.

LongHorn Steakhouse was the standout brand, while Olive Garden grew same-restaurant sales 4.0% for the year. Reported results were modestly affected by closure, impairment, and Chuy's integration costs, and the company also recorded a $42.1 million^b pre-tax gain from the Olive Garden Canada sale that is excluded from adjusted figures. Capital return was a central theme.

The board raised the quarterly dividend 8.0% to $1.62^c per share and authorized a new $1.5 billion share repurchase program with no expiration, replacing the prior authorization. Management highlighted about 9% annualized adjusted EBITDA growth since 2019 and said cash generation funds maintenance capex, dividend growth, and new unit development. Full-year operating cash flow was $1.85 billion against $734 million of capital expenditures.

Fiscal 2026 dividends paid were $693 million^d and buybacks were $672 million. Fiscal 2027 guidance calls for total sales of $13.60 to $13.75 billion, same-restaurant sales growth of 2.5% to 3.5%, and diluted EPS from continuing operations of $11.10 to $11.35, implying roughly 4% to 7% growth over the $10.64 adjusted base. Management expects 75 to 80 new restaurant openings and capex of about $875 million.

Balance sheet changes to note include short-term debt rising to $693.6 million, which will need to be refinanced or repaid, and total debt falling from about $2.1 billion to $2.3 billion including the current portion. Separately, the board amended the bylaws, which is largely governance housekeeping.

02—Key points

Key Highlights

Q4 FY2026 sales rose 13.7% to $3.72B, including 7.6 points from the extra 53rd week; blended same-restaurant sales grew 4.6%.
Q4 adjusted diluted EPS was $3.66, up 22.8% year over year; reported diluted EPS from continuing operations was $3.54.
FY2026 adjusted diluted EPS was $10.64, up 11.4%, with consolidated same-restaurant sales up 4.5% and LongHorn up 7.2%.
Quarterly dividend increased 8.0% to $1.62 per share, payable August 3, 2026.
New $1.5 billion share repurchase authorization with no expiration replaces the prior program; Q4 buybacks totaled $138 million.
FY2027 guidance: sales of $13.60–$13.75B, same-restaurant sales growth of 2.5%–3.5%, and diluted EPS of $11.10–$11.35.
Short-term debt and current portion of long-term debt rose to $693.6M from zero, a refinancing item to monitor.

03—Questions

Frequently Asked Questions

How much of the sales growth was organic versus driven by the 53rd week?
Q4 sales growth of 13.7% included 7.6 percentage points from the extra week, so underlying growth was roughly 6%. The blended same-restaurant sales increase of 4.6% and contributions from 43 net new restaurants account for the rest. For the full year, the extra week added 2.1 points to the 9.4% sales growth.
Why is adjusted EPS meaningfully higher than reported EPS?
Adjustments primarily add back restaurant closure and impairment charges, Chuy's integration costs, and strategic review costs related to Bahama Breeze. For the full year, reported diluted EPS from continuing operations was $10.44 versus $10.64 adjusted, and a $0.27 gain from the Olive Garden Canada sale was excluded from the adjusted figure. Investors should weigh the recurring nature of some of these add-backs when judging earnings quality.
What does the new $1.5 billion buyback and higher dividend signal about capital allocation?
The board is returning cash at a higher pace while still funding growth. With a 1.5 billion authorization against roughly 114 million diluted shares, the program is meaningful, but the company has recently paid out about $693 million in dividends and $672 million in buybacks, which together consume most of its operating cash flow after capex. Continued shareholder returns depend on sustaining cash generation and keeping leverage in check.
What are the key risks in the fiscal 2027 outlook?
Guidance assumes same-restaurant sales growth of 2.5% to 3.5%, which is below fiscal 2026's 4.5%, and inflation of about 3%. Margin pressure from labor, food, and restaurant expenses could erode EPS growth. Higher interest expense and the need to refinance $693.6 million of short-term debt are additional considerations. The guidance also depends on continued execution at Olive Garden and LongHorn and on the planned wind-down of Bahama Breeze.
Are the Bylaw amendments material to shareholders?
The amendments are primarily administrative. They raise the number of shareholders who may aggregate holdings to meet director nomination ownership thresholds from 10 to 20, align nomination procedures with the SEC's universal proxy rule (Rule 14a-19), update notice provisions, and remove obsolete text. They do not appear to change shareholder economics, though the higher aggregation limit makes it somewhat easier for groups of shareholders to nominate directors.

04—Continue

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