Darden Restaurants Inc (NYSE:DRI), the parent company of popular dining chains including Olive Garden and LongHorn Steakhouse, saw its shares move higher on Friday as it reported better-than-expected financial results for the fiscal fourth quarter.
Revenue for the quarter ending May 25 was up 10.6% from the year-ago quarter to $3.27 billion, ahead of the Wall Street consensus estimate of $3.26 billion.
This was attributed to increased same-store sales and sales from the acquisition of 103 Chuy’s Tex Mex restaurants and 25 net new restaurants.
Same-store sales increased by 4.6%, outperforming the expected 3.5% increase. Olive Garden same-store sales rose 6.9%, and LongHorn Steakhouse grew 6.7%.
Adjusted earnings per share, which excluded $0.40 per share in expenses related to the acquisition of Chuy’s Tex Mex and other one-time costs, were up 12.5% from the year-ago quarter at $2.98, ahead of the consensus $2.96.
"We had a strong quarter with same-restaurant sales and earnings growth that exceeded our expectations," Darden CEO Rick Cardenas said. "Our adherence to our winning strategy, anchored in our four competitive advantages and being brilliant with the basics, led to a successful year.”
For fiscal 2026, Darden expects total sales growth of 7% to 8%, same-store restaurant growth of 2% to 3.5%, new restaurant openings of 60 to 65, and EPS in the range of $10.50 to $10.70.
Additionally, Darden announced a new $1 billion share repurchase program and increased its quarterly dividend by 7.1% to $1.50 per share.
Raj Vennam, Darden CFO, said the company’s long-term framework calls for 10% to 14% total shareholder return over time. “Over our 30-year history as a public company, Darden has achieved an annualized total shareholder return of 10% or greater over any 10 fiscal-year period,” Vennam said.
Shares of Darden added 2.1% at about $227 late morning on Friday.