Darden Restaurants, Inc. (NYSE: DRI), the parent company of popular brands such as Olive Garden, LongHorn Steakhouse, and The Capital Grille, announced its financial results for the fourth quarter and the full fiscal year ended May 25, 2025. The company posted solid growth in both revenue and earnings, driven by strong same-restaurant sales performance, strategic expansion through acquisitions, and disciplined operational execution.
Fourth Quarter Fiscal 2025 Highlights
In the final quarter of fiscal 2025, Darden reported total sales of $3.3 billion, representing a robust 10.6% increase compared to the same period a year ago. This growth was propelled by a 4.6% blended same-restaurant sales increase across its portfolio, in addition to revenue contributions from 103 newly acquired Chuy’s Tex Mex restaurants and 25 net new restaurant openings.
Reported diluted net earnings per share (EPS) from continuing operations were $2.58. However, after adjusting for $0.40 per share in transaction and integration costs related to the Chuy’s acquisition, as well as restaurant closure costs, adjusted diluted EPS came in at $2.98, marking a 12.5% year-over-year increase.
Darden also continued to return capital to shareholders during the quarter, repurchasing approximately 200,000 shares of its common stock for a total of $51 million.
Fiscal Year 2025 Highlights
For the full fiscal year, Darden reported total sales of $12.1 billion, a 6.0% increase over the previous fiscal year. This performance was primarily supported by a 2.0% blended increase in same-restaurant sales, along with the acquisition of Chuy’s and the opening of 25 new restaurants.
A breakdown of same-restaurant sales growth by business segment reveals the following:
- Olive Garden: +1.7%
- LongHorn Steakhouse: +5.1%
- Fine Dining: -3.0%
- Other Business (including Chuy’s): +0.2%
- Consolidated Darden: +2.0%
The company delivered reported diluted EPS from continuing operations of $8.88 for the year. After adjusting for $0.67 per share in Chuy’s-related integration and closure costs, adjusted EPS totaled $9.55, an increase of 7.5% over fiscal 2024.
CEO Commentary
Commenting on the company’s performance, Rick Cardenas, President and Chief Executive Officer of Darden, expressed confidence in the company’s long-term direction:
“We had a strong quarter with same-restaurant sales and earnings growth that exceeded our expectations. Our adherence to our winning strategy—anchored in our four competitive advantages and a commitment to being brilliant with the basics—led to a successful year. This approach continues to be the right one for Darden, and we are well-positioned to execute our strategy to deliver consistent growth and long-term shareholder value.”
Segment Profit Reporting Update
Beginning in the fourth quarter of fiscal 2025, Darden revised how it reports segment profit. Specifically, the company has begun excluding pre-opening costs from this measure, aligning it more closely with operational performance. Figures for fiscal 2024 were recast to allow for meaningful year-over-year comparisons.
Segment profit now reflects sales minus direct restaurant-level costs, including food and beverage, labor, operational expenses, and marketing. It excludes non-cash real estate-related expenses and certain other items. The newly acquired Chuy’s restaurants are now accounted for within the Other Business segment starting from the acquisition date.
Dividend Increase
Demonstrating confidence in the company’s cash flow and long-term prospects, Darden’s Board of Directors declared a quarterly cash dividend of $1.50 per share, reflecting a 7.1% increase from the prior quarter’s dividend. The dividend will be payable on August 1, 2025, to shareholders of record at the close of business on July 10, 2025.
New $1 Billion Share Repurchase Authorization
In a further move to enhance shareholder value, Darden’s Board also authorized a new $1 billion share repurchase program on June 18, 2025. This new program replaces the previous authorization and comes with no expiration date, giving the company flexibility to repurchase its outstanding common stock opportunistically based on market conditions.
During the fourth quarter alone, Darden repurchased $51 million worth of shares, reaffirming its commitment to returning capital to shareholders through both dividends and buybacks.
CFO Remarks
Chief Financial Officer Raj Vennam highlighted the company’s consistent financial discipline and strong historical track record of shareholder returns:
“Our long-term framework calls for 10–15% total shareholder return over time. Over our 30-year history as a public company, Darden has achieved an annualized total shareholder return of 10% or greater over any 10 fiscal-year period. This level of performance is a testament to the strength of our operating model and the durability of the cash flows it generates.”
