Darden Restaurants' Remarkable 2025 Performance and Future Plans
Darden Restaurants Reports Impressive Financial Results
Darden Restaurants, Inc. (NYSE: DRI) reported strong financial results for the fourth quarter and the full fiscal year. The report highlighted significant growth driven by strategic acquisitions and operational enhancements.
Fourth Quarter Highlights
In the fourth quarter, Darden saw a remarkable 10.6% increase in total sales, reaching $3.3 billion. This growth was supported by a blended same-restaurant sales increase of 4.6%, bolstered by the acquisition of Chuy's Tex Mex restaurants and the opening of new locations.
Same-Restaurant Sales Growth
The same-restaurant sales presented varied performance across different brands. Olive Garden and LongHorn Steakhouse led the charge with impressive increases of 6.9% and 6.7% respectively. The fine dining segment experienced challenges, facing a decline of 3.3% in sales.
Net Earnings and Share Repurchase
Reported diluted net earnings from continuing operations stood at $2.58 per share. When adjusted for one-time costs related to acquisitions, the earnings improved to $2.98 per share, marking a 12.5% increase. During the quarter, Darden also initiated a share repurchase program, buying back $51 million worth of its common stock.
Fiscal 2025 Financial Overview
For the full fiscal year, Darden's total sales increased 6% to $12.1 billion, again driven by new restaurant openings and strategic acquisitions, including the addition of Chuy's locations. Same-restaurant sales growth was modest at 2%, led primarily by the performance of Olive Garden and LongHorn Steakhouse.
Annual Earnings Performance
Net earnings were reported at $8.88 per share, and adjusting for acquisition-related expenses, the figure rose to $9.55, reflecting a 7.5% increase compared to the previous year. The strong financial results affirm Darden's robust operational strategy.
Looking Ahead: Fiscal 2026 Outlook
Darden has outlined an optimistic financial outlook for fiscal 2026, which includes the addition of a 53rd week in the fiscal calendar. The company anticipates total sales growth of 7% to 8%, with approximately 2% attributed to the extra week.
- Projected same-restaurant sales growth between 2% to 3.5%;
- New restaurant openings planned at 60 to 65 locations;
- Total capital expenditures estimated between $700 million to $750 million;
- Estimated inflation around 2.5% to 3%;
- Diluted net earnings per share from continuing operations anticipated between $10.50 to $10.70.
Dividend Announcement
The Board of Directors has declared a quarterly cash dividend of $1.50 per share, representing a 7.1% increase from the previous quarter. This highlights Darden's commitment to returning value to shareholders.
Investor Conference Call Updates
Darden held an investor conference call to discuss these results and the outlook. Management reiterated their confidence in the company’s future growth and operational stability.
About Darden Restaurants
Darden is a multifaceted restaurant company with a rich portfolio, including popular dining establishments such as Olive Garden, LongHorn Steakhouse, and more. Their commitment to quality and customer service continues to drive their success and growth initiatives.
Frequently Asked Questions
What were Darden's sales for the fourth quarter of 2025?
Darden reported fourth quarter sales of $3.3 billion, reflecting a 10.6% increase.
How much did Darden increase its quarterly dividend?
Darden's Board declared a quarterly cash dividend of $1.50 per share, which is a 7.1% increase from the previous quarter.
What is Darden's outlook for fiscal 2026?
Darden projects total sales growth of 7% to 8% for fiscal 2026, with additional growth attributed to new restaurant openings.
What were the reported earnings per share for fiscal 2025?
The reported diluted net earnings per share from continuing operations for fiscal 2025 were $8.88, with adjusted earnings at $9.55.
What impact did the acquisition of Chuy's have on Darden's financials?
The acquisition of Chuy's contributed significantly to Darden's sales growth and operational performance in the current fiscal year.
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