Darden Restaurants Earnings Call Transcripts
Fiscal Year 2026
-
Q3 sales rose 5.9% year-over-year with strong same-restaurant sales and all major brands outperforming the industry. Guidance for FY26 was raised, with robust new unit growth and continued margin management despite commodity inflation and macro uncertainty.
-
Q2 FY26 saw 7% sales growth, strong segment performance, and continued outperformance versus the industry, despite elevated beef costs pressuring margins. Guidance was raised for sales and unit growth, with disciplined capital returns and investments in menu innovation and delivery channels.
-
First quarter results exceeded expectations with strong same restaurant sales and earnings growth, led by Olive Garden and LongHorn Steakhouse. Guidance for fiscal 2026 was raised, with 7.5%-8.5% total sales growth and 65 new openings planned, despite commodity inflation risks.
Fiscal Year 2025
-
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.
-
Q3 sales rose 6% year-over-year to $3.2B, with adjusted EPS up 6.9% and all segments growing sales and profit margins. Olive Garden and LongHorn led with strong promotions and delivery expansion, while guidance for Q4 and FY26 points to continued growth and new unit openings.
-
Second quarter sales rose 6% year-over-year, driven by strong same restaurant sales at major brands and the Chuy's acquisition. Fiscal 2025 guidance remains solid, with $12.1 billion in sales expected and continued margin improvement. Integration of Chuy's and new tech rollouts are progressing well.
-
Q1 results were impacted by industry-wide sales softness in July, but trends improved in August and September. Strategic initiatives include menu innovation, value-focused marketing, and a new Uber delivery partnership, with guidance reaffirmed and Chuy's acquisition on track.
Fiscal Year 2024
-
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.
-
Sales grew 8.6% to $11.4B in FY24, with adjusted EPS up 11% to $8.88 and strong cost management offsetting a weaker consumer environment. FY25 guidance calls for $11.8B–$11.9B in sales, 1%–2% same restaurant sales growth, and a 7% dividend increase.