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Darden Restaurants Inc
NYSE:DRI

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Darden Restaurants Inc Logo
Darden Restaurants Inc
NYSE:DRI
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Price: 196.34 USD 0.35% Market Closed
Market Cap: $22.6B

Darden Restaurants Inc
Investor Relations

Darden Restaurants Inc., a prominent player in the American dining landscape, has crafted a robust portfolio comprising some of the nation's beloved casual dining brands. It owns and operates well-known restaurant chains such as Olive Garden, LongHorn Steakhouse, and The Capital Grille, among others. Darden's story is one of strategic brand management and leveraging consumer loyalty through differentiated dining experiences. The company has honed its expertise in serving diverse culinary preferences, appealing to both casual diners and patrons seeking upscale steakhouse offerings. It ensures that each brand retains its unique identity while benefiting from the collective strength of Darden’s corporate resources, which include supply chain efficiencies, real estate acumen, and marketing prowess.

The path to profitability for Darden is paved by a meticulously designed operating model that captures value across every facet of the dining experience. Revenue streams flow from the consistent turnover of high-volume restaurant traffic, enhanced by an emphasis on customer engagement and satisfaction. Darden invests heavily in brand-specific marketing to cultivate strong brand loyalty and repeat visits. The average guest check and operational efficiency are critical metrics, closely monitored to optimize performance across their vast network of locations. By maintaining a disciplined approach to cost management while investing in front-line innovation, such as digital ordering and delivery platforms, Darden ensures that it constantly adapts to shifting consumer preferences without losing its competitive edge in the bustling restaurant industry.

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Last Earnings Call
Fiscal Period
Q3 2026
Call Date
Mar 19, 2026
AI Summary
Q3 2026

Sales: Darden generated $3.3 billion in total sales, up 5.9% year-over-year with same-restaurant sales up 4.2%.

Profitability: Adjusted diluted net earnings per share from continuing operations were $2.95, up 5.4%; adjusted EBITDA was $579 million; results were in line with expectations.

Brand performance: All segments posted positive comps; LongHorn led with 7.2% same-restaurant sales while Olive Garden delivered 3.2% same-restaurant sales for the quarter.

Guidance: Fiscal 2026 outlook raised: total sales growth roughly 9.5%, same-restaurant sales ~4.5%, adjusted diluted EPS $10.57–$10.67 (includes ~$0.25 from a 53rd week).

Q4 view: Implied Q4 sales growth 13%–14.5% (includes extra week), same-restaurant sales 3.5%–5.0%, and EPS $3.59–$3.69.

Costs & inflation: Commodities inflation expected ~4% for FY26; Darden saw ~50 bps higher food & beverage expense in the quarter and had ~85% fixed-price coverage for Q4.

Capital deployment: Company plans ~70 openings in FY26; for FY27 expects 75–80 openings and ~$850 million of capex (breakdown included).

Capital returns: Returned $300 million in the quarter ($173 million dividends, $127 million buybacks).

Key Financials
Total sales
$3.3 billion
Same-restaurant sales
4.2%
Adjusted diluted net earnings per share from continuing operations (quarter)
$2.95
Adjusted EBITDA
$579 million
Cash returned to shareholders (quarter)
$300 million
Dividends paid (quarter)
$173 million
Share repurchases (quarter)
$127 million
Restaurant level EBITDA
21%
Adjusted earnings from continuing operations (dollars)
$341 million
Adjusted earnings from continuing operations (as % of sales)
10.2%
Food and beverage expense
50 bps higher
Restaurant labor
20 bps lower
Marketing expense
10 bps higher
Adjusted effective tax rate (quarter)
12.1%
Commodities inflation (FY26)
approximately 4%
Net new restaurants (quarter)
31 net new restaurants
Olive Garden total sales
increased 4.7%
Olive Garden same-restaurant sales (quarter)
3.2%
Olive Garden segment profit margin
23%
Olive Garden pricing
2.8%
Olive Garden catering growth
about 130 basis points
Olive Garden off-premise mix
29% of sales
Olive Garden Uber delivery mix
4.7% of sales
LongHorn total sales
increased 11.2%
LongHorn same-restaurant sales
7.2%
LongHorn pricing
4.4%
LongHorn traffic
3.3%
LongHorn segment profit margin
18.6%
Fine Dining same-restaurant sales
2.1%
Fine Dining segment profit margin
22%
Other Business same-restaurant sales
3.9%
Other Business segment profit margin
15.6%
Fiscal 2026 adjusted diluted net EPS
$10.57 to $10.67
Q4 adjusted diluted net EPS guidance
$3.59 to $3.69
New restaurant openings (FY26 guidance)
approximately 70 new restaurant openings
CapEx (FY27 guidance)
$850 million
Q4 beef fixed-price coverage
85% fixed price coverage
Interest expense (FY27 guidance)
approximately $200 million
Earnings Call Recording
Other Earnings Calls

Management

Mr. Matthew R. Broad J.D.
Senior VP, General Counsel, Chief Compliance Officer & Corporate Secretary
No Bio Available
Mr. Todd A. Burrowes
President of Business Development
No Bio Available
Mr. Christopher Chang
Senior VP & Chief Information Officer
No Bio Available
Ms. Susan M. Connelly
Senior VP and Chief Communications & Public Affairs Officer
No Bio Available
Ms. Sarah H. King
Senior VP and Chief People & Diversity Officer
No Bio Available
Mr. Douglas J. Milanes
Senior VP & Chief Supply Chain Officer
No Bio Available
Mr. Kevin Kalicak
Senior Vice President of Finance for Olive Garden
No Bio Available
Ms. Jaime Bunker
Senior Vice President of Marketing - Olive Garden
No Bio Available
Ms. Laura Williamson
President of LongHorn Steakhouse
No Bio Available
Mr. Mike Wilson
Senior Vice President of Finance at LongHorn Steakhouse
No Bio Available

Contacts

Address
FLORIDA
Orlando
1000 Darden Center Dr
Contacts
+14072454000.0
www.darden.com
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