Darden Restaurants (DRI) Q2 2026 earnings summary

Executive summary

• Total sales grew 7.3% year-over-year to $3.1 billion in Q2 FY26, with all segments posting positive same-restaurant sales and record or near-record guest satisfaction scores.

• Adjusted diluted EPS from continuing operations was $2.08, up 2.5% year-over-year, and adjusted EBITDA reached $466 million.

• Opened 30 net new restaurants, including Chuy's acquisition, contributing to growth.

• Returned $396 million to shareholders through dividends and share repurchases.

• Maintained value for guests by pricing below inflation despite commodity headwinds.

Financial highlights

• Q2 consolidated sales were $3.1 billion, up 7.3% year-over-year, driven by 4.3% same-restaurant sales growth and new units.

• Adjusted EBITDA was $466 million; adjusted earnings from continuing operations were $243 million, representing 7.8% of sales.

• Restaurant-level EBITDA margin was 18.7%.

• Operating income for Q2 was $320.4 million, up from $292.1 million year-over-year.

• Returned $174 million in dividends and repurchased $222 million in shares in Q2.

Outlook and guidance

• Fiscal 2026 guidance: total sales growth of 8.5%-9.3%, same-restaurant sales growth of 3.5%-4.3%, 65-70 new restaurant openings, and capital spending of $750-$775 million.

• Adjusted diluted EPS expected between $10.50-$10.70, including $0.20 from a 53rd week.

• Effective tax rate expected at 13%.

• EPS growth expected to improve sequentially in Q3 and Q4 as pricing catches up to inflation.

• Pricing expected to be closer to mid-3% in the back half, with inflation moderating.