1. Darden's Q2 sales rose 7.3%, reaching $3.1 billion. 2. Same-restaurant sales grew 4.3%, driven by Olive Garden and LongHorn Steakhouse. 3. Adjusted earnings per share increased 2.5% to $2.08, excluding certain costs. 4. The company repurchased $222 million worth of stock this quarter. 5. A quarterly dividend of $1.50 per share has been declared.
FAQ
Why Bullish?
Strong sales and earnings growth indicate robust business performance, potentially attracting investors.
How important is it?
Revenue growth alongside steady earnings and dividends suggests positive investor confidence.
Why Short Term?
Immediate investor sentiment may be positively influenced before the dividend payment.
Darden Restaurants Reports Strong Fiscal 2026 Second Quarter Results
Darden Restaurants, Inc. (NYSE: DRI) has announced its financial results for the second quarter of fiscal 2026, ending on November 23, 2025. The company reported a remarkable 7.3% increase in total sales, reaching $3.1 billion, driven by healthy same-restaurant sales growth of 4.3% and revenue from 30 newly opened restaurants.
Second Quarter 2026 Financial Highlights
- Total sales: $3.1 billion, a 7.3% increase compared to the same quarter last year.
- Same-restaurant sales performance:
- Olive Garden: 4.7%
- LongHorn Steakhouse: 5.9%
- Fine Dining: 0.8%
- Other Business: 3.1%
- Reported diluted net earnings per share: $2.03
- Adjusted diluted net earnings per share: $2.08, reflecting a 2.5% improvement year-over-year.
- Share repurchase: Darden repurchased $222 million of its common stock during the quarter.
Segment Performance Analysis
Darden has recently adjusted its segment profit reporting to exclude pre-opening costs, allowing for better year-on-year comparisons. Below are the financial figures for the second quarter segmented by brand:
| Segment | Q2 Sales (2026) ($ in millions) | Q2 Segment Profit (2026) ($ in millions) |
|---|---|---|
| Consolidated Darden | $3,102.1 | N/A |
| Olive Garden | $1,362.7 | $297.3 |
| LongHorn Steakhouse | $775.9 | $126.0 |
| Fine Dining | $316.2 | $46.9 |
| Other Business | $647.3 | $86.7 |
Dividend and Share Repurchase Update
Darden's Board of Directors has declared a quarterly cash dividend of $1.50 per share, payable on February 2, 2026, to shareholders of record by January 9, 2026. Additionally, the company continues its share repurchase program, with approximately $643 million remaining under the current $1 billion authorization.
Fiscal 2026 Financial Outlook
Looking ahead, Darden has updated its financial outlook for fiscal 2026, including the impact of a 53rd week:
- Total sales growth expected between 8.5% to 9.3%
- Same-restaurant sales growth projected between 3.5% to 4.3%
- New restaurant openings: 65 to 70
- Total capital spending budgeted at $750 to $775 million
- Total inflation forecast: approximately 3.5%
- Effective tax rate anticipated to be around 13%
- Adjusted diluted net earnings per share projected between $10.50 to $10.70
Investor Conference Call
Darden will host an investor conference call today at 8:30 AM ET to discuss the recent financial performance in greater detail. Investors can listen to the live webcast via this link. A replay will also be available shortly after the call.
About Darden Restaurants
Darden Restaurants, Inc. operates a portfolio of well-known dining brands, including Olive Garden, LongHorn Steakhouse, and others. For further information about Darden, visit www.darden.com.