Darden Restaurants (DRI) Q4 2026 earnings summary

Executive summary

• Delivered strong fourth quarter and fiscal 2026 results, with total sales of $13.21B, up 9.4% year-over-year, and adjusted EBITDA of $2.16B, significantly outperforming industry benchmarks in same-restaurant sales and guest counts.

• All major brands posted positive same-restaurant sales, with Olive Garden, LongHorn, and Yard House achieving record performances; Olive Garden generated $5.6B in annual sales from 949 locations.

• Opened 71 new restaurants in fiscal 2026, exceeding initial plans, and expanded international franchising with new locations in Spain, India, and Canada.

• Maintained industry-leading guest satisfaction and employee retention, promoting over 1,300 hourly team members to management.

• Quarterly dividend increased by 8% to $1.62 per share, and a new $1.5B share repurchase program was authorized.

Financial highlights

• Fourth quarter total sales reached $3.72B, up 13.7% year-over-year, driven by 4.6% same-restaurant sales growth and positive traffic.

• Adjusted diluted EPS for Q4 was $3.66, up 22.8% year-over-year; full-year adjusted EPS was $10.64, up 11.4%.

• Adjusted EBITDA for the quarter was $678M; full-year adjusted EBITDA was $2.16B.

• Returned $1.4B to shareholders in fiscal 2026 through dividends and share repurchases.

• Segment profit margins improved year-over-year, with Olive Garden at 24.3% and LongHorn Steakhouse at 21.2%.

Outlook and guidance

• Fiscal 2027 sales expected at $13.6–$13.75B, with same-restaurant sales growth of 2.5%–3.5%.

• Plan to open 75–80 new restaurants and convert 11 Bahama Breeze locations; capital expenditures projected at $875M.

• EBITDA guidance of $2.26–$2.29B and diluted EPS of $11.10–$11.35; effective tax rate expected at ~13.5%.

• Inflation (commodities and labor) forecast at ~3%.

• Board approved an 8% dividend increase to $1.52–$1.62 per quarter ($6.48 annualized).