Darden Restaurants (DRI) Beats Q4 Expectations, Sets Optimistic Outlook

Darden Restaurants, Inc. (NYSE:DRI) reported its financial results for the fourth quarter and fiscal year 2025, showcasing a robust performance that surpassed market expectations. The company also provided an optimistic outlook for fiscal 2026, with plans for expansion and increased shareholder returns.

Darden Restaurants, Inc. Reports 10.6% Increase in Total Sales

In the fourth quarter of fiscal 2025, Darden Restaurants, Inc. reported a 10.6% increase in total sales, reaching $3.3 billion. This growth was driven by a 4.6% rise in same-restaurant sales and the acquisition of 103 Chuy’s Tex Mex restaurants, along with 25 new restaurant openings. Notably, Olive Garden and LongHorn Steakhouse saw significant same-restaurant sales increases of 6.9% and 6.7%, respectively, while the Fine Dining segment experienced a decline of 3.3%.

Despite the challenges in the Fine Dining segment, Darden’s overall performance exceeded expectations. The company reported adjusted diluted net earnings per share of $2.98, surpassing the anticipated EPS of $2.94.

This figure reflects a 12.5% increase, excluding the $0.40 impact from Chuy’s transaction and integration-related costs. The reported diluted net earnings per share stood at $2.58, further highlighting the company’s ability to deliver strong financial results.

Join our Telegram group and never miss a breaking digital asset story.

DRI Announces New $1 Billion Share Repurchase Program

Comparing the actual performance against market expectations, Darden’s revenue of $3.3 billion exceeded the projected $3.26 billion. This achievement underscores the company’s effective strategy and execution, as emphasized by President and CEO Rick Cardenas.

He attributed the success to the company’s adherence to its winning strategy, which focuses on competitive advantages and operational excellence. The company’s ability to outperform expectations in both sales and earnings is a testament to its robust business model and strategic focus.

In addition to its growth plans, Darden announced a new $1 billion share repurchase program, underscoring its commitment to enhancing shareholder returns.

This program replaces the existing share repurchase authorization and reflects the company’s strong cash flow generation and financial stability. CFO Raj Vennam highlighted Darden’s long-term framework, which aims for a total shareholder return of 10-15% over time. This strategic focus on shareholder value, coupled with the company’s robust financial performance, positions Darden well for continued success in the coming fiscal year.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.