Darden Restaurants Reports Strong Q1 Performance

By Greg Peters • Sunday, September 28 06:05 • Permanent Link

Darden Restaurants Inc. recently released its 10-Q report, revealing a company that owns and operates a portfolio of full-service restaurants in the United States and Canada. The company operates under various brand names, including Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, and others. As of August 24, 2025, Darden Restaurants Inc. owned and operated 2,165 restaurants in the United States and had 77 franchised restaurants in operation located in Canada, Latin America, the Caribbean, Asia, and the Middle East.

In the first quarter of fiscal 2026, Darden Restaurants Inc. reported total sales of $3.04 billion, representing a 10.4% increase compared to the same period in fiscal 2025. Net earnings from continuing operations were $257.9 million, a 24.2% increase from the first quarter of fiscal 2025. Diluted net earnings per share from continuing operations were $2.19, reflecting a 25.9% increase from the same period in fiscal 2025.

The company's outlook for fiscal 2026 includes an expected sales growth between 7.5% and 8.5%, driven by the addition of new restaurants and a same-restaurant sales growth of 2.5% to 3.5%. Additionally, Darden Restaurants Inc. anticipates approximately 65 new restaurant openings and expects capital expenditures to be between $700 and $750 million.

In terms of segment results, the company's Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Business segments reported varying profit margins for the first quarter of fiscal 2026. Olive Garden's segment profit margin was 20.6%, LongHorn Steakhouse's was 17.4%, Fine Dining's was 13.5%, and Other Business's was 16.1%.

Darden Restaurants Inc.'s financial performance in the first quarter of fiscal 2026 was driven by factors such as sales increases across its various segments, strategic initiatives including the exploration of alternatives for the Bahama Breeze brand, and an exclusive multi-year delivery arrangement with Uber Technologies, Inc. The company also provided a detailed breakdown of its sales by segment and operating data, including costs and expenses as a percentage of sales for the periods indicated.

Following these announcements, the company's shares moved 0.59%, and are now trading at a price of $188.12. If you want to know more, read the company's complete 10-Q report here.

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