Darden Restaurants Inc. has recently released its 10-Q report, providing insights into the company's financial performance for the first three months of fiscal 2026. Darden, based in Orlando, Florida, operates full-service restaurants in the United States and Canada under various brand names, including Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen.
In the first quarter of fiscal 2026, Darden reported total sales of $3.04 billion, marking a 10.4% increase from the same period in fiscal 2025. The company's operating income also saw a significant rise, reaching $339.2 million, a 26% increase from the previous year.
The company's net earnings from continuing operations for the first three months of fiscal 2026 were $257.9 million, compared to $207.6 million for the same period in fiscal 2025. Additionally, diluted net earnings per share from continuing operations were $2.19 for the first quarter of fiscal 2026, up from $1.74 for the same period in fiscal 2025.
Darden's sales growth was driven by various factors, including the addition of 125 net new restaurants, a 4.7% increase in blended same-restaurant sales, and the acquisition of 103 Chuy’s restaurants in October 2024. The company also announced the sale of eight Olive Garden locations in Canada and entered into an area development and franchise agreement with Recipe Unlimited Corporation.
The report also detailed the number of company-owned restaurants open at the end of the first quarter of fiscal 2026, totaling 2,165, compared to 2,159 at the end of fiscal 2025. Darden's strategic initiatives included exploring alternatives for the Bahama Breeze brand and entering into an exclusive multi-year delivery arrangement with Uber Technologies, Inc.
The report provided a breakdown of sales by segment, highlighting the performance of individual brands such as Olive Garden, LongHorn Steakhouse, and Fine Dining. It also outlined the company's costs and expenses, including food and beverage, restaurant labor, and marketing expenses.
Furthermore, the 10-Q report discussed the effective income tax rate, losses from discontinued operations, and segment results. Darden's management expects sales growth for fiscal 2026 to be between 7.5% and 8.5%, driven by various factors including new restaurant openings and same-restaurant sales growth.
As a result of these announcements, the company's shares have moved 0.59% on the market, and are now trading at a price of $188.12. For the full picture, make sure to review DARDEN RESTAURANTS INC's 10-Q report.
