Darden Restaurants Inc. has recently released its 10-Q report, providing a detailed overview of its financial performance for the first three months of fiscal 2026. The company operates a portfolio of full-service restaurants in the United States and Canada, including well-known brands such as Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen.
In the first quarter of fiscal 2026, Darden Restaurants reported total sales of $3.04 billion, marking a 10.4% increase compared to the same period in fiscal 2025. The growth was primarily driven by sales from 125 net new restaurants, including the acquisition of 103 Chuy’s restaurants in October 2024, and a 4.7% increase in blended same-restaurant sales.
Net earnings from continuing operations for the first three months of fiscal 2026 were $257.9 million, a 24.2% increase from the same period in fiscal 2025. Diluted net earnings per share from continuing operations were reported at $2.19, reflecting a 25.9% increase from the first quarter of fiscal 2025.
The company's effective income tax rate for continuing operations was 12.2% for the three months ended August 24, 2025, compared to 10.6% for the same period in 2024. The increase in the tax rate was primarily driven by higher net earnings from continuing operations.
Darden Restaurants operates four reportable segments: Olive Garden, LongHorn Steakhouse, Fine Dining, and Other Business. The segment profit margin for each segment was reported as follows for the first quarter of fiscal 2026: Olive Garden at 20.6%, LongHorn Steakhouse at 17.4%, Fine Dining at 13.5%, and Other Business at 16.1%.
The company's outlook for fiscal 2026 includes expectations of sales growth between 7.5% and 8.5%, driven by the addition of new restaurants and same-restaurant sales growth. Additionally, Darden Restaurants anticipates capital expenditures between $700 and $750 million, which includes the addition of Chuy’s and expectations for Chuy’s results from the date of acquisition forward.
In terms of sales by segment, Olive Garden reported a 7.6% increase in sales 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 reported an 8.8% increase in sales, driven by same-restaurant sales increases and revenue from new restaurants.
Darden Restaurants' financial report provides a comprehensive insight into its operational and financial performance, highlighting its continued growth and strategic initiatives in the competitive restaurant industry. 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. If you want to know more, read the company's complete 10-Q report here.
