Darden Restaurants (DRI) Q3 2025 earnings summary

Executive summary

• Total sales rose 6.2% year-over-year to $3.2 billion in Q3, driven by a 0.7% blended same-restaurant sales increase, new restaurant openings, and the Chuy's acquisition.

• Adjusted diluted EPS from continuing operations was $2.80, up 6.9% year-over-year, excluding $0.06 per share in Chuy's transaction and integration costs.

• Olive Garden and LongHorn Steakhouse led segment sales and profit growth, supported by menu promotions and delivery expansion.

• Chuy's integration is progressing, with HR, supply chain, and POS transitions underway.

• All segments grew total sales and profit margins, with several brands setting sales records during holidays.

Financial highlights

• Q3 consolidated sales were $3,158 million, up from $2,974.8 million a year ago.

• Adjusted EBITDA reached $559 million, and adjusted earnings from continuing operations were $330 million.

• Restaurant-level EBITDA margin improved by 50 basis points year-over-year to 21.1%.

• Operating income for Q3 was $418.2 million, up 8% year-over-year.

• $217 million was returned to shareholders via dividends and share repurchases in Q3.

Outlook and guidance

• Fiscal 2025 total sales expected to be approximately $12.1 billion, with same-restaurant sales growth of about 1.5%.

• Adjusted diluted EPS from continuing operations forecasted at $9.45 to $9.52, excluding $47 million pre-tax in Chuy's transaction and integration costs.

• 50 to 55 new restaurant openings and total capital spending of about $650 million planned for FY25.

• Fiscal 2026 plans: 60–65 new restaurants, $675–$725 million in capital spending, and a 53rd week adding ~$0.20 EPS.

• Effective tax rate anticipated at approximately 12.5%.