Restaurant company Darden Restaurants, Inc. (DRI) reported Friday that profit for the fourth quarter edged down but earnings per share increased from last year, driven by sales growth across all segments. Adjusted earnings per share and quarterly net sales topped analysts' estimates. The company also initiated raised its adjusted earnings and net sales guidance for the full-year 2026, slightly below estimates.
In pre-market activity on the NYSE, Darden shares are jumping $8.16 or 3.66 percent to trade at $231.00.
"We had a strong quarter with same-restaurant sales and earnings growth that exceeded our expectations," said President & CEO Rick Cardenas.
For the fourth quarter, net earnings were $303.8 million or $2.58 per share, compared to $308.1 million or $2.57 per share in the prior-year quarter.
The results for the latest quarter include $0.40 of Chuy's transaction and integration related costs and costs from restaurant closures.
Excluding items, adjusted earnings for the quarter were $2.98 per share, compared to $2.65 per share in the year-ago quarter.
On average, 27 analysts polled expected the company to report earnings of $2.97 per share for the quarter. Analysts' estimates typically exclude special items.
Total sales for the quarter grew 10.6 percent to $3.27 billion from $2.96 billion in the same quarter last year, driven by blended same-restaurant sales increase of 4.6 percent and sales from the acquisition of 103 Chuy's Tex Mex restaurants and 25 net new restaurants. Analysts expected revenues of $3.26 billion for the quarter.
Sales at Olive Garden segment increased to $1.38 billion from $1.28 million, with same-restaurant sales growth of 6.9 percent. LongHorn Steakhouse segment sales grew to $833.8 million from $762.7 million, with same-restaurant sales growth of 6.7 percent.
Sales at Fine Dining segment increased to $334.6 million from $327.1 million last year, with same-restaurant sales decline of 3.3 percent.
Darden's Board of Directors also declared a 7.1% higher quarterly cash dividend of $1.50 per share on the Company's outstanding common stock, payable on August 1, 2025 to shareholders of record at the close of business on July 10, 2025.
On Wednesday, Darden's Board of Directors authorized a new share repurchase program under which the Company may repurchase up to $1 billion of its outstanding common stock.
Looking ahead to fiscal 2026, the company now projects net earnings from continuing operations in a range of $10.50 to $10.70 per share on total sales growth of 7 to 8 percent, with same-restaurant sales growth of 2.0 to 3.5 percent. It also expects 60 to 65 new restaurant openings.
The Street is looking for earnings of $10.75 per share on total sales growth of 8.94 percent to $13.14 billion for the year. For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
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