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Darden Restaurants (DRI) Q1 2025 earnings summary

Event summary combining transcript, slides, and related documents.

Logotype for Darden Restaurants Inc

Q1 2025 earnings summary

20 Jan, 2026

Executive summary

  • Q1 sales rose 1.0% year-over-year to $2.8 billion, driven by 42 net new restaurants, partially offset by a 1.1% blended same-restaurant sales decrease.

  • Adjusted diluted EPS from continuing operations was $1.75, slightly below last year, with reported diluted EPS at $1.74.

  • Net earnings from continuing operations increased to $207.6 million, with adjusted earnings totaling $209 million, or 7.6% of sales.

  • Strategic focus remains on operational execution, menu innovation, value-driven marketing, and maintaining long-term business health.

  • Board declared a quarterly cash dividend of $1.40 per share, payable November 1, 2024.

Financial highlights

  • Operating income was $270.7 million (adjusted), with an operating margin of 9.8%.

  • Adjusted EBITDA was $392 million, and restaurant-level EBITDA margin was 18.8%.

  • Net cash provided by operating activities was $273.2 million, with $145.2 million in capital expenditures.

  • $338 million returned to shareholders via $166 million in dividends and $172 million in share repurchases.

  • Average diluted shares outstanding decreased to 119.2 million from 122.0 million year-over-year.

Outlook and guidance

  • Fiscal 2025 full-year diluted net EPS guidance reiterated at $9.40 to $9.60, excluding Chuy's transaction and integration costs.

  • FY2025 sales expected between $11.8–$11.9 billion, with same-restaurant sales growth of 1.0–2.0% and 45–50 new openings.

  • Capital expenditures projected at $550–$600 million.

  • Chuy's acquisition is on track to close in mid-October, anticipated to be neutral to adjusted EPS for the year, excluding transaction costs.

  • Sales trends improved after July softness, with planned initiatives supporting the remainder of the year.

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