Darden Restaurants Earnings Call Transcripts
Fiscal Year 2027
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Q1 2027 saw 5.1% sales growth and positive same-restaurant sales across all segments, with strong performance at Olive Garden, LongHorn, and Yard House. Full-year EPS guidance was reaffirmed, and capital returns to shareholders remained robust.
Fiscal Year 2026
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The virtual meeting covered board elections, management proposals, and a shareholder proposal, with all directors elected and the shareholder proposal rejected. No questions were raised by shareholders, and voting results will be filed with the SEC.
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Fourth quarter and fiscal year results exceeded expectations, with strong same-restaurant sales and traffic growth across all major brands. Fiscal 2027 guidance projects continued sales and earnings growth, robust new unit development, and increased dividends, while maintaining industry outperformance and financial discipline.
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Q3 sales rose 5.9% to $3.3B, with all major brands outperforming industry benchmarks. Adjusted EPS grew 5.4% to $2.95, and FY26 guidance was raised for sales, comps, and new units, with strong operational execution and high guest satisfaction supporting continued momentum.
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Q2 FY26 saw strong sales growth, outpacing the industry with all segments posting positive comps and robust guest satisfaction. Despite elevated beef costs, margins were managed through pricing discipline and productivity gains. Guidance was raised for sales and unit growth, with continued investment in menu innovation and digital initiatives.
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Same restaurant sales and earnings growth exceeded expectations, led by Olive Garden and LongHorn Steakhouse. Fiscal 2026 guidance was raised for sales and unit growth, but margin pressure is expected to peak in Q2 due to commodity inflation, especially beef. Delivery and menu innovation continue to drive guest engagement.
Fiscal Year 2025
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Q4 and full-year results exceeded expectations, with strong sales and margin growth led by Olive Garden and LongHorn. Fiscal 2026 guidance projects continued sales and EPS growth, increased dividends, and ongoing reinvestment, while strategic portfolio actions and international expansion support long-term value.
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Q3 results met expectations despite weather headwinds, with all segments posting sales and margin growth. Olive Garden and LongHorn outperformed industry benchmarks, aided by menu innovation and delivery expansion. Fiscal 2025 guidance was raised, and new restaurant prototypes are supporting future growth.
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Second quarter results met expectations, with strong same restaurant sales at major brands and successful integration of Chuy's. Fiscal 2025 guidance was updated to reflect the acquisition, with sales expected at $12.1 billion and EPS guidance unchanged. Operational execution, menu innovation, and technology upgrades continue to drive performance.
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Q1 results were impacted by industry-wide sales softness in July, but trends improved in August and September. Strategic initiatives include menu innovation, a new Uber delivery partnership, and value-focused marketing, with guidance reaffirmed and strong shareholder returns maintained.
Fiscal Year 2024
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The acquisition brings a leading Tex-Mex brand into the portfolio for $605 million, expanding into a high-growth category with strong unit economics and expected $15 million in synergies by fiscal 2026. The deal is projected to be accretive to earnings by fiscal 2027.
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Sales grew 8.6% to $11.4B and adjusted EPS rose 11% to $8.88, exceeding guidance despite a weaker consumer environment. The company completed the Ruth's Chris integration, improved margins, and returned $1.1B to shareholders. FY25 guidance calls for $11.8B–$11.9B sales and 1%–2% same-store growth.