Darden Restaurants, Inc. has recently released its 10-Q report, which provides a detailed insight into the company's financial performance. Darden Restaurants, Inc. owns and operates a variety of full-service restaurants in the United States and Canada, including Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, and others. The company currently operates 2,165 restaurants in the United States and 77 franchised restaurants in other regions.
According to the report, for the first three months of fiscal 2026, Darden Restaurants reported a 10.4% increase in total sales, amounting to $3.04 billion, compared to $2.76 billion for the same period in fiscal 2025. The net earnings from continuing operations were $257.9 million for the first three months of fiscal 2026, reflecting a 24.2% increase from the previous year. Diluted net earnings per share from continuing operations were reported at $2.19, marking a 25.9% increase from the first three months of fiscal 2025.
In terms of the number of company-owned restaurants, Darden Restaurants reported 2,165 restaurants in the United States at the end of the first quarter of fiscal 2026, compared with 2,159 at the end of fiscal 2025. The company also announced its decision to explore strategic alternatives for the Bahama Breeze brand, which includes 28 locations owned and operated by Darden and one franchise location.
The report also outlined the company's outlook, expecting sales growth for fiscal 2026 to be between 7.5% and 8.5%, driven by growth of 2.0% related to the fifty-third week, same-restaurant sales growth to be between 2.5% and 3.5%, and approximately 65 new restaurant openings. Additionally, Darden Restaurants expects capital expenditures incurred to be between $700 and $750 million.
The financial highlights revealed that Olive Garden's sales increased by 7.6% for the first quarter of fiscal 2026, primarily driven by same-restaurant sales increases and revenue from new restaurants, partially offset by the sale of eight Olive Garden Canada locations. LongHorn Steakhouse witnessed a sales increase of 8.8% for the same period, primarily driven by same-restaurant sales increases combined with revenue from new restaurants.
The report also provided an analysis of costs and expenses, showing that food and beverage costs decreased as a percent of sales, while restaurant labor costs and restaurant expenses increased. Additionally, the effective income tax rate for continuing operations for the three months ended August 24, 2025, was 12.2%, compared to 10.6% for the same period in 2024.
Darden Restaurants, Inc.'s segment profit margin for the first quarter of fiscal 2026 was also detailed. Olive Garden's segment profit margin decreased, while LongHorn Steakhouse, Fine Dining, and Other Business witnessed fluctuations in their segment profit margins compared to the previous year.
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.
