Darden Restaurants, Inc. has recently released its 10-Q report, providing insights into its financial performance and operations. The company, founded in 1938 and based in Orlando, Florida, operates full-service restaurants in the United States and Canada under various brand names, including Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, and others.
In its most recent financial report, Darden Restaurants, Inc. reported a 10.4% increase in total sales, reaching $3.04 billion for the first three months of fiscal 2026 compared to $2.76 billion for 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 strategic moves were also highlighted, including the sale of eight Olive Garden locations in Canada and an exclusive multi-year delivery arrangement with Uber Technologies, Inc., which has been rolled out to nearly all Olive Garden and Cheddar’s Scratch Kitchen locations.
Looking ahead, Darden Restaurants, Inc. expects sales growth for fiscal 2026 to be between 7.5 and 8.5 percent, driven by the addition of new restaurants and same-restaurant sales growth. Additionally, the company anticipates capital expenditures to be between $700 and $750 million for the fiscal year.
The financial report also provided a breakdown of sales by segment, with Olive Garden, LongHorn Steakhouse, and Fine Dining showing sales increases primarily driven by same-restaurant sales and revenue from new restaurants. The report also detailed the company's costs and expenses, including food and beverage costs, restaurant labor, and marketing expenses, offering insights into the changes in these expenses as a percentage of sales compared to the previous year.
The effective income tax rate for continuing operations for the three months ended August 24, 2025, was reported at 12.2 percent, compared to 10.6 percent for the same period in 2024. The report also highlighted the impact of H.R. 1, also known as the One Big Beautiful Bill Act (OBBBA), on the company's financial position and tax deductions.
Finally, the report presented the segment results, showing the segment profit margin for Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Business, providing insights into the performance of each operating segment.
Following these announcements, the company's shares moved 0.59%, 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.
