Darden Restaurants (DRI) DRI Q2 Financial Results Summary

2025-12-18 · Stocks · QuoteReporter

Darden Restaurants (DRI) Q2 2026 Financial Results Summary

On December 18, 2025, Darden Restaurants, Inc. (NYSE: DRI) reported its financial results for the second quarter ended November 23, 2025. Below is a summary of the key highlights from this report.

Financial Highlights

Total Sales: Increased by 7.3% to $3.1 billion, attributable to a blended same-restaurant sales increase of 4.3% and sales growth from 30 net new restaurants.
Same-Restaurant Sales Breakdown:
Consolidated Darden: 4.3%
Olive Garden: 4.7%
LongHorn Steakhouse: 5.9%
Fine Dining: 0.8%
Other Business: 3.1%
Earnings per Share (EPS):
Reported diluted net EPS from continuing operations was $2.03 (an increase of 11.5% vs. Q2 2025).
Adjusted diluted net EPS, excluding transaction and integration-related costs, was $2.08, reflecting a 2.5% increase compared to the prior year.
Share Repurchase Program: The company repurchased approximately 1.1 million shares, totaling $222 million. At the end of Q2 2026, Darden had $643 million remaining under its $1 billion repurchase authorization.

Dividend Declaration

Darden’s Board declared a quarterly cash dividend of $1.50 per share, payable on February 2, 2026, to shareholders of record as of January 9, 2026.

Segment Performance

Segment	Q2 2026 Sales	Q2 2025 Sales	Q2 2026 Segment Profit	Q2 2025 Segment Profit
Consolidated Darden	$3,102.1	$2,890.0	(To be provided)	(To be provided)
Olive Garden	$1,362.7	$1,292.5	$297.3	$277.8
LongHorn Steakhouse	$775.9	$710.1	$126.0	$135.1
Fine Dining	$316.2	$306.0	$46.9	$53.9
Other Business	$647.3	$581.4	$86.7	$81.2

Segment	Year-to-Date 2026 Sales	Year-to-Date 2025 Sales	Year-to-Date 2026 Segment Profit	Year-to-Date 2025 Segment Profit
Consolidated Darden	$6,146.8	$5,647.0	(To be provided)	(To be provided)
Olive Garden	$2,663.8	$2,501.6	$564.9	$528.0
LongHorn Steakhouse	$1,552.3	$1,423.6	$260.9	$263.4
Fine Dining	$602.7	$584.9	$85.6	$92.8
Other Business	$1,328.0	$1,136.9	$196.0	$165.4

Fiscal 2026 Financial Outlook

The company updated its financial outlook for the fiscal year 2026. Key expectations include:
– Total Sales Growth: Forecasted to be between 8.5% and 9.3%, accounting for approximately 2% growth related to a 53rd week.
– Same-Restaurant Sales Growth: Expected between 3.5% and 4.3%.
– New Restaurant Openings: Anticipated to be between 65 to 70.
– Total Capital Spending: Estimated at $750 to $775 million.
– Total Inflation: Approximately 3.5%.
– Effective Tax Rate: Projected at 13%.
– Adjusted Diluted EPS: Expected to range from $10.50 to $10.70, including approximately $0.20 related to the 53rd week.

Conclusion

Darden Restaurants demonstrated solid growth in Q2 2026 with increased sales, positive same-restaurant performances across major brands, and continued commitment to returning value to shareholders through dividends and share repurchase activities. The company’s forward-looking guidance indicates a positive outlook for the remainder of the fiscal year.

### CONSOLIDATED STATEMENTS OF EARNINGS
_(In millions, except per share data)_
_(Unaudited)_

<div class="table-container">
<table>
<thead>
<tr>
<th></th>
<th>Three Months Ended</th>
<th></th>
<th>Six Months Ended</th>
<th></th>
</tr>
</thead>
<tbody>
<tr>
<td></td>
<td style="text-align:right">11/23/2025</td>
<td style="text-align:right">11/24/2024</td>
<td style="text-align:right">11/23/2025</td>
<td style="text-align:right">11/24/2024</td>
</tr>
<tr>
<td>Sales</td>
<td style="text-align:right">$ 3,102.1</td>
<td style="text-align:right">$ 2,890.0</td>
<td style="text-align:right">$ 6,146.8</td>
<td style="text-align:right">$ 5,647.0</td>
</tr>
<tr>
<td>Costs and expenses:</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Food and beverage</td>
<td style="text-align:right">963.7</td>
<td style="text-align:right">872.8</td>
<td style="text-align:right">1,892.8</td>
<td style="text-align:right">1,719.5</td>
</tr>
<tr>
<td>Restaurant labor</td>
<td style="text-align:right">1,000.1</td>
<td style="text-align:right">926.8</td>
<td style="text-align:right">1,988.1</td>
<td style="text-align:right">1,816.1</td>
</tr>
<tr>
<td>Restaurant expenses</td>
<td style="text-align:right">508.3</td>
<td style="text-align:right">472.2</td>
<td style="text-align:right">1,012.5</td>
<td style="text-align:right">925.9</td>
</tr>
<tr>
<td>Marketing expenses</td>
<td style="text-align:right">48.7</td>
<td style="text-align:right">48.8</td>
<td style="text-align:right">97.8</td>
<td style="text-align:right">93.5</td>
</tr>
<tr>
<td>Pre-opening costs</td>
<td style="text-align:right">8.1</td>
<td style="text-align:right">5.5</td>
<td style="text-align:right">14.0</td>
<td style="text-align:right">10.0</td>
</tr>
<tr>
<td>General and administrative expenses</td>
<td style="text-align:right">117.8</td>
<td style="text-align:right">144.1</td>
<td style="text-align:right">253.9</td>
<td style="text-align:right">270.5</td>
</tr>
<tr>
<td>Depreciation and amortization</td>
<td style="text-align:right">137.9</td>
<td style="text-align:right">127.7</td>
<td style="text-align:right">273.0</td>
<td style="text-align:right">249.2</td>
</tr>
<tr>
<td>Impairments and (gain) loss on disposal of assets, net</td>
<td style="text-align:right">-2.9</td>
<td style="text-align:right">—</td>
<td style="text-align:right">-44.9</td>
<td style="text-align:right">1.0</td>
</tr>
<tr>
<td>Total operating costs and expenses</td>
<td style="text-align:right">$ 2,781.7</td>
<td style="text-align:right">$ 2,597.9</td>
<td style="text-align:right">$ 5,487.2</td>
<td style="text-align:right">$ 5,085.7</td>
</tr>
<tr>
<td>Operating income</td>
<td style="text-align:right">320.4</td>
<td style="text-align:right">292.1</td>
<td style="text-align:right">659.6</td>
<td style="text-align:right">561.3</td>
</tr>
<tr>
<td>Interest, net</td>
<td style="text-align:right">48.0</td>
<td style="text-align:right">46.2</td>
<td style="text-align:right">93.4</td>
<td style="text-align:right">83.3</td>
</tr>
<tr>
<td>Earnings before income taxes</td>
<td style="text-align:right">272.4</td>
<td style="text-align:right">245.9</td>
<td style="text-align:right">566.2</td>
<td style="text-align:right">478.0</td>
</tr>
<tr>
<td>Income tax expense</td>
<td style="text-align:right">35.0</td>
<td style="text-align:right">30.2</td>
<td style="text-align:right">70.9</td>
<td style="text-align:right">54.7</td>
</tr>
<tr>
<td>Earnings from continuing operations</td>
<td style="text-align:right">$ 237.4</td>
<td style="text-align:right">$ 215.7</td>
<td style="text-align:right">$ 495.3</td>
<td style="text-align:right">$ 423.3</td>
</tr>
<tr>
<td>Losses from discontinued operations, net of tax benefit</td>
<td style="text-align:right">-0.2</td>
<td style="text-align:right">-0.6</td>
<td style="text-align:right">-0.3</td>
<td style="text-align:right">-1.0</td>
</tr>
<tr>
<td>Net earnings</td>
<td style="text-align:right">$ 237.2</td>
<td style="text-align:right">$ 215.1</td>
<td style="text-align:right">$ 495.0</td>
<td style="text-align:right">$ 422.3</td>
</tr>
<tr>
<td>Basic net earnings per share:</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Earnings from continuing operations</td>
<td style="text-align:right">$ 2.05</td>
<td style="text-align:right">$ 1.84</td>
<td style="text-align:right">$ 4.26</td>
<td style="text-align:right">$ 3.59</td>
</tr>
<tr>
<td>Losses from discontinued operations</td>
<td style="text-align:right">—</td>
<td style="text-align:right">-0.01</td>
<td style="text-align:right">—</td>
<td style="text-align:right">-0.01</td>
</tr>
<tr>
<td>Net earnings</td>
<td style="text-align:right">$ 2.05</td>
<td style="text-align:right">$ 1.83</td>
<td style="text-align:right">$ 4.26</td>
<td style="text-align:right">$ 3.58</td>
</tr>
<tr>
<td>Diluted net earnings per share:</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Earnings from continuing operations</td>
<td style="text-align:right">$ 2.03</td>
<td style="text-align:right">$ 1.82</td>
<td style="text-align:right">$ 4.23</td>
<td style="text-align:right">$ 3.57</td>
</tr>
<tr>
<td>Losses from discontinued operations</td>
<td style="text-align:right">—</td>
<td style="text-align:right">—</td>
<td style="text-align:right">-0.01</td>
<td style="text-align:right">-0.01</td>
</tr>
<tr>
<td>Net earnings</td>
<td style="text-align:right">$ 2.03</td>
<td style="text-align:right">$ 1.82</td>
<td style="text-align:right">$ 4.22</td>
<td style="text-align:right">$ 3.56</td>
</tr>
<tr>
<td>Average number of common shares outstanding:</td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr>
<td>Basic</td>
<td style="text-align:right">115.9</td>
<td style="text-align:right">117.5</td>
<td style="text-align:right">116.3</td>
<td style="text-align:right">118.0</td>
</tr>
<tr>
<td>Diluted</td>
<td style="text-align:right">116.7</td>
<td style="text-align:right">118.3</td>
<td style="text-align:right">117.2</td>
<td style="text-align:right">118.7</td>
</tr>
</tbody>
</table>
</div>

### CONSOLIDATED BALANCE SHEETS
_(In millions)_

<div class="table-container">
<table>
<thead>
<tr>
<th>ASSETS</th>
<th>11/23/2025</th>
<th>5/25/2025</th>
</tr>
</thead>
<tbody>
<tr>
<td>Current assets:</td>
<td>(Unaudited)</td>
<td></td>
</tr>
<tr>
<td>Cash and cash equivalents</td>
<td style="text-align:right">$ 224.1</td>
<td style="text-align:right">$ 240.0</td>
</tr>
<tr>
<td>Receivables, net</td>
<td style="text-align:right">126.1</td>
<td style="text-align:right">93.8</td>
</tr>
<tr>
<td>Inventories</td>
<td style="text-align:right">354.5</td>
<td style="text-align:right">311.6</td>
</tr>
<tr>
<td>Prepaid income taxes</td>
<td style="text-align:right">186.0</td>
<td style="text-align:right">135.6</td>
</tr>
<tr>
<td>Prepaid expenses and other current assets</td>
<td style="text-align:right">152.7</td>
<td style="text-align:right">156.7</td>
</tr>
<tr>
<td>Total current assets</td>
<td style="text-align:right">$ 1,043.4</td>
<td style="text-align:right">$ 937.7</td>
</tr>
<tr>
<td>Land, buildings and equipment, net</td>
<td style="text-align:right">4,943.6</td>
<td style="text-align:right">4,716.0</td>
</tr>
<tr>
<td>Operating lease right-of-use assets</td>
<td style="text-align:right">3,560.7</td>
<td style="text-align:right">3,555.9</td>
</tr>
<tr>
<td>Goodwill</td>
<td style="text-align:right">1,658.2</td>
<td style="text-align:right">1,659.4</td>
</tr>
<tr>
<td>Trademarks</td>
<td style="text-align:right">1,346.4</td>
<td style="text-align:right">1,346.4</td>
</tr>
<tr>
<td>Other assets</td>
<td style="text-align:right">387.9</td>
<td style="text-align:right">371.6</td>
</tr>
<tr>
<td>Total assets</td>
<td style="text-align:right">$ 12,940.2</td>
<td style="text-align:right">$ 12,587.0</td>
</tr>
<tr>
<td>LIABILITIES AND STOCKHOLDERS’ EQUITY</td>
<td></td>
<td></td>
</tr>
<tr>
<td>Current liabilities:</td>
<td></td>
<td></td>
</tr>
<tr>
<td>Accounts payable</td>
<td style="text-align:right">$ 460.8</td>
<td style="text-align:right">$ 439.6</td>
</tr>
<tr>
<td>Short-term debt</td>
<td style="text-align:right">438.0</td>
<td style="text-align:right">—</td>
</tr>
<tr>
<td>Accrued payroll</td>
<td style="text-align:right">188.3</td>
<td style="text-align:right">207.5</td>
</tr>
<tr>
<td>Accrued income taxes</td>
<td style="text-align:right">1.3</td>
<td style="text-align:right">4.7</td>
</tr>
<tr>
<td>Other accrued taxes</td>
<td style="text-align:right">93.2</td>
<td style="text-align:right">83.0</td>
</tr>
<tr>
<td>Unearned revenues</td>
<td style="text-align:right">567.0</td>
<td style="text-align:right">599.4</td>
</tr>
<tr>
<td>Other current liabilities</td>
<td style="text-align:right">901.9</td>
<td style="text-align:right">913.3</td>
</tr>
<tr>
<td>Total current liabilities</td>
<td style="text-align:right">$ 2,650.5</td>
<td style="text-align:right">$ 2,247.5</td>
</tr>
<tr>
<td>Long-term debt</td>
<td style="text-align:right">2,139.1</td>
<td style="text-align:right">2,128.9</td>
</tr>
<tr>
<td>Deferred income taxes</td>
<td style="text-align:right">352.4</td>
<td style="text-align:right">278.8</td>
</tr>
<tr>
<td>Operating lease liabilities - non-current</td>
<td style="text-align:right">3,829.7</td>
<td style="text-align:right">3,816.9</td>
</tr>
<tr>
<td>Other liabilities</td>
<td style="text-align:right">1,888.1</td>
<td style="text-align:right">1,803.6</td>
</tr>
<tr>
<td>Total liabilities</td>
<td style="text-align:right">$ 10,859.8</td>
<td style="text-align:right">$ 10,275.7</td>
</tr>
<tr>
<td>Stockholders’ equity:</td>
<td></td>
<td></td>
</tr>
<tr>
<td>Common stock and surplus</td>
<td style="text-align:right">$ 2,298.4</td>
<td style="text-align:right">$ 2,295.6</td>
</tr>
<tr>
<td>Retained earnings (deficit)</td>
<td style="text-align:right">-235.7</td>
<td style="text-align:right">-16.1</td>
</tr>
<tr>
<td>Accumulated other comprehensive income</td>
<td style="text-align:right">17.7</td>
<td style="text-align:right">31.8</td>
</tr>
<tr>
<td>Total stockholders’ equity</td>
<td style="text-align:right">$ 2,080.4</td>
<td style="text-align:right">$ 2,311.3</td>
</tr>
<tr>
<td>Total liabilities and stockholders’ equity</td>
<td style="text-align:right">$ 12,940.2</td>
<td style="text-align:right">$ 12,587.0</td>
</tr>
</tbody>
</table>
</div>