ORLANDO, Fla., Dec. 18, 2025
/PRNewswire/ -- Darden Restaurants, Inc. (NYSE:DRI) today reported its financial results for the second
quarter ended November 23, 2025.
Second Quarter 2026 Financial Highlights, Comparisons Versus Same Fiscal Quarter Last Year
- Total sales increased 7.3% to $3.1 billion, driven by a blended same-restaurant sales1
increase of 4.3% and sales from 30 net new restaurants
- Same-restaurant sales:
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Consolidated Darden1
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4.3 %
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Olive Garden
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4.7 %
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LongHorn Steakhouse
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5.9 %
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Fine Dining
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0.8 %
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Other Business1
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3.1 %
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- Reported diluted net earnings per share from continuing operations were $2.03
- Excluding $0.03 of Chuy's transaction and integration related costs and $0.02 of closed restaurant
costs2, adjusted diluted net earnings per share from continuing operations were $2.08, an
increase of 2.5%3
- The Company repurchased $222 million of its outstanding common stock
"The second quarter exceeded our top-line expectations as every segment delivered positive same-restaurant
sales," said Darden President & CEO Rick Cardenas. "Our restaurant teams did a great job of being
brilliant with the basics, driving record, or near-record, guest satisfaction scores across all our brands.
Despite facing significant commodity headwinds, we leveraged our four competitive advantages to provide
strong value for our guests and we made appropriate investments in the business to ensure long-term
success."
"I'm proud of the results we continue to deliver for our shareholders, and we remain committed to executing
our strategy to drive long-term growth and shareholder value."
Segment Performance
During the fourth quarter of fiscal 2025, the Company changed its
reporting of segment profit to exclude pre-opening costs. Fiscal 2025 figures were recast for comparability.
Segment profit represents sales, less costs for food and beverage, restaurant labor, restaurant expenses and
marketing expenses. Segment profit excludes non-cash real estate related expenses. Sales and profits from
Chuy's restaurants are included within the Other Business segment from the date of acquisition forward.
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Q2 Sales
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Q2 Segment Profit
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($ in millions)
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2026
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2025
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2026
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2025
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Consolidated Darden
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$3,102.1
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$2,890.0
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Olive Garden
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$1,362.7
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$1,292.5
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$297.3
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$277.8
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LongHorn Steakhouse
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$775.9
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$710.1
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$126.0
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$135.1
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Fine Dining
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$316.2
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$306.0
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$46.9
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$53.9
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Other Business
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$647.3
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$581.4
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$86.7
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$81.2
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YTD Sales
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YTD Segment Profit
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($ in millions)
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2026
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2025
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2026
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2025
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Consolidated Darden
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$6,146.8
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$5,647.0
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Olive Garden
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$2,663.8
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$2,501.6
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$564.9
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$528.0
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LongHorn Steakhouse
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$1,552.3
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$1,423.6
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$260.9
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$263.4
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Fine Dining
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$602.7
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$584.9
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$85.6
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$92.8
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Other Business
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$1,328.0
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$1,136.9
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$196.0
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$165.4
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1 Will not include
Chuy's until they have been owned and operated by Darden for a 16-month period
(Q4 fiscal 2026) and does not include Bahama Breeze as they are not expected to
be operated by Darden for the entirety of the fiscal year.
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2 Primarily costs related
to the closure of 22 underperforming restaurants that were permanently closed
during the fourth quarter of fiscal 2025
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3 See the "Non-GAAP
Information" below for more details
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Dividend Declared
Darden's Board of Directors declared a quarterly cash dividend
of $1.50 per share on the Company's outstanding common stock. The dividend is payable
on February 2, 2026, to shareholders of record at the close of business on January 9, 2026.
Share Repurchase Program
During the quarter, the Company repurchased approximately 1.1
million shares of its common stock for a total of $222 million. As of the end of the second quarter of
fiscal 2026, the Company had $643 million remaining under the current $1 billion repurchase authorization.
Fiscal 2026 Financial Outlook
The Company updated its full year financial outlook for fiscal
2026, which includes a 53rd week. This outlook includes the impact of the additional week. We will provide
additional details during our investor conference call scheduled for this morning at 8:30 am ET.
- Total sales growth of 8.5% to 9.3%, including approximately 2% growth related to the 53rd week
- Same-restaurant sales4 growth of 3.5% to 4.3%
- New restaurant openings of 65 to 70
- Total capital spending of $750 to $775 million
- Total inflation of approximately 3.5%
- An effective tax rate of approximately 13%
- Adjusted diluted net earnings per share from continuing operations of $10.50 to $10.703,
including:
- Approximately $0.20 related to the addition of the 53rd week
- Approximately 116.5 million weighted average diluted shares outstanding
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4 Annual
same-restaurant sales is a 52-week metric and excludes the impact of Chuy's,
which will not have been owned and operated by Darden for a 16-month period
prior to the beginning of fiscal 2026, as well as Bahama Breeze as they are not
expected to be operated by Darden for the entirety of the fiscal
year.
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Investor Conference Call
The Company will host a conference call and slide presentation
today, Thursday, December 18, 2025, at 8:30 am ET to review its recent financial performance. The
call will be webcast live at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=PmcRM0vc.
Please allow extra time prior to the call to visit the site and download any software required to listen to
the webcast. Prior to the call, a slide presentation will be posted on the Investor Relations section of our
website at: www.darden.com. For those who cannot access the Internet,
please dial 1-877-407-9219. For those who cannot listen to the live broadcast, a replay will be
available shortly after the call.
About Darden
Darden is a restaurant company featuring a portfolio of differentiated brands
that include Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch
Kitchen, The Capital Grille, Chuy's, Seasons 52, Eddie V's and Bahama Breeze. For more information, please
visit www.darden.com.
Information About Forward-Looking Statements
Forward-looking statements in this communication
regarding our expected earnings performance and all other statements that are not historical facts,
including without limitation statements concerning our future economic performance, are made under the Safe
Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements
speak only as of the date on which such statements are first made, and we undertake no obligation to update
such statements to reflect events or circumstances arising after such date. We wish to caution investors not
to place undue reliance on any such forward-looking statements. By their nature, forward-looking statements
involve risks and uncertainties that could cause actual results to materially differ from those anticipated
in the statements. The most significant of these uncertainties are described in Darden's Form 10-K, Form
10-Q and Form 8-K reports. These risks and uncertainties include: a failure to address cost pressures and a
failure to effectively deliver cost management activities and achieve some economies of scale in purchasing,
certain economic and business factors and their impacts on the restaurant industry and other general
macroeconomic factors including unemployment, energy prices, tariffs and interest rates, the inability to
hire, train, reward and retain restaurant team members and determine and maintain adequate staffing, a
failure to recruit, develop and retain effective leaders or the loss or shortage of personnel with key
capacities and skills that could impact our strategic direction, increased labor and insurance costs, health
concerns arising from food-related pandemics, outbreaks of flu, viruses or other diseases, food safety and
food-borne illness concerns, insufficient guest or employee facing technology or a failure to maintain a
continuous and secure cyber network, compliance with privacy and data protection laws and risks of failures
or breaches of our data protection systems, the inability to successfully complete our integration of Chuy's
Holdings operations into our business, risks relating to public policy changes and federal, state and local
regulation of our business, intense competition, changing consumer preferences, an inability or failure to
recognize, respond to and effectively manage the accelerated impact of social media, a failure to identify
and execute innovative marketing and guest relationship tactics, ineffective or improper use of other
marketing initiatives and increased advertising and marketing costs, climate change, adverse weather
conditions and natural disasters, long-term and non-cancelable property leases, inability or failure to
execute a business continuity plan following a major natural disaster, shortages , delays or interruptions
in the delivery of food and other products and services from our third-party vendors and suppliers, failure
to drive profitable sales growth, a lack of availability of suitable locations for new restaurants or a
decline in the quality of locations of our current restaurants, higher-than-anticipated costs associated
with the opening of new restaurants or with the closing, relocating or remodeling of existing restaurants,
risks associated with doing business with franchisees, licensees and vendors in foreign markets, volatility
in the market value of derivatives, volatility in the U.S. equity markets affecting our ability to
efficiently hedge exposures, failure to protect our intellectual property, our reporting on environmental,
social and governance matters or our sustainability ratings, litigation, unfavorable publicity or failure to
respond effectively to adverse publicity, disruptions in the financial and credit markets, impairment of the
carrying value of our goodwill or other intangible assets, changes in tax laws or unanticipated tax
liabilities, failure of our internal controls over financial reporting and future changes in accounting
standards, and other factors and uncertainties discussed from time to time in reports filed by Darden with
the Securities and Exchange Commission.
Non-GAAP Information
The information in this press release includes financial information
determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"),
such as adjusted diluted net earnings per share from continuing operations. The Company's management uses
these non-GAAP measures in its analysis of the Company's performance. The Company believes that the
presentation of certain non-GAAP measures provides useful supplemental information that is essential to a
proper understanding of the operating results of the Company's businesses. These non-GAAP disclosures should
not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Reconciliations of these non-GAAP measures are included in this release.
(Analysts) Courtney Aquilla, (407) 245-5054; (Media) Rich Jeffers, (407) 245-4189
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Fiscal Q2 Reported to Adjusted Earnings
Reconciliation
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Q2 2026
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Q2 2025
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$ in millions, except per share amounts
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Earnings
Before
Income
Tax
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Income
Tax
Expense
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Net
Earnings
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Diluted
Net
Earnings
Per
Share
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Earnings
Before
Income
Tax
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Income
Tax
Expense
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Net
Earnings
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Diluted
Net
Earnings
Per
Share
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Reported Earnings from Continuing
Operations
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$ 272.4
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$ 35.0
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$ 237.4
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$ 2.03
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$ 245.9
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$ 30.2
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$ 215.7
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$ 1.82
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% Change vs Prior Year
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11.5 %
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Total Adjustments:
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$
7.7
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$
1.9
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$
5.8
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$ 0.05
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$ 27.7
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$
3.4
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$ 24.3
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$ 0.21
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Chuy's transaction and integration related
costs
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4.9
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1.2
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3.7
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0.03
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27.7
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3.4
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24.3
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0.21
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General and administrative
expense
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4.9
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1.2
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3.7
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0.03
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25.0
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2.8
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22.2
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0.19
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Interest expense5
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—
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—
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—
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—
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2.7
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0.6
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2.1
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0.02
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Closed Restaurants2
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2.8
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0.7
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2.1
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0.02
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—
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—
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—
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—
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Adjusted Earnings from Continuing
Operations
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$ 280.1
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$ 36.9
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$ 243.2
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$ 2.08
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$ 273.6
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$ 33.6
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$ 240.0
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$ 2.03
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% Change vs Prior Year
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2.5 %
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5 In Q2 2025,
interest expense relates to write-off of term loan issuance and interest rate
hedge settlement.
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Reconciliation of Fiscal 2026 Reported to
Adjusted Earnings Outlook
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2026
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Reported diluted net earnings per share from
continuing operations
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$10.62
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to
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$10.82
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Chuy's transaction and integration related
costs
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0.06
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0.06
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Closed restaurants2
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0.08
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0.08
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Gain on Olive Garden Canada sale
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(0.26)
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(0.26)
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Adjusted diluted net earnings per share from
continuing operations
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$10.50
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to
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$10.70
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Darden Restaurants, Inc.
Number of Company-Owned
Restaurants
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11/23/25
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11/24/24
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Olive Garden
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936
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925
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LongHorn Steakhouse
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601
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580
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Cheddar's Scratch Kitchen
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184
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181
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Chuy's
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109
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104
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Yard House
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91
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88
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Ruth's Chris Steak House
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82
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82
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The Capital Grille
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73
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70
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Seasons 52
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45
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45
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Eddie V's
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30
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30
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Bahama Breeze
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28
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43
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The Capital Burger
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3
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4
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Darden Continuing Operations
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2,182
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2,152
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DARDEN RESTAURANTS, INC.
CONSOLIDATED STATEMENTS OF
EARNINGS
(In millions, except per share
data)
(Unaudited)
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Three Months Ended
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Six Months Ended
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11/23/2025
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11/24/2024
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11/23/2025
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11/24/2024
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Sales
|
$
3,102.1
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|
$
2,890.0
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|
$
6,146.8
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|
$
5,647.0
|
|
Costs and expenses:
|
|
|
|
|
|
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|
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Food and beverage
|
963.7
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|
872.8
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|
1,892.8
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|
1,719.5
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Restaurant labor
|
1,000.1
|
|
926.8
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|
1,988.1
|
|
1,816.1
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Restaurant expenses
|
508.3
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|
472.2
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|
1,012.5
|
|
925.9
|
|
Marketing expenses
|
48.7
|
|
48.8
|
|
97.8
|
|
93.5
|
|
Pre-opening costs
|
8.1
|
|
5.5
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|
14.0
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|
10.0
|
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General and administrative expenses
|
117.8
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|
144.1
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|
253.9
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|
270.5
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|
Depreciation and amortization
|
137.9
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|
127.7
|
|
273.0
|
|
249.2
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Impairments and (gain) loss on disposal of
assets, net
|
(2.9)
|
|
—
|
|
(44.9)
|
|
1.0
|
|
Total operating costs and expenses
|
$
2,781.7
|
|
$
2,597.9
|
|
$
5,487.2
|
|
$
5,085.7
|
|
Operating income
|
320.4
|
|
292.1
|
|
659.6
|
|
561.3
|
|
Interest, net
|
48.0
|
|
46.2
|
|
93.4
|
|
83.3
|
|
Earnings before income taxes
|
272.4
|
|
245.9
|
|
566.2
|
|
478.0
|
|
Income tax expense
|
35.0
|
|
30.2
|
|
70.9
|
|
54.7
|
|
Earnings from continuing operations
|
$
237.4
|
|
$
215.7
|
|
$
495.3
|
|
$
423.3
|
|
Losses from discontinued operations, net of tax
benefit of $0.1, $0.2, $0.3, and
$0.6, respectively
|
(0.2)
|
|
(0.6)
|
|
(0.3)
|
|
(1.0)
|
|
Net earnings
|
$
237.2
|
|
$
215.1
|
|
$
495.0
|
|
$
422.3
|
|
Basic net earnings per share:
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
$
2.05
|
|
$
1.84
|
|
$
4.26
|
|
$
3.59
|
|
Losses from discontinued operations
|
—
|
|
(0.01)
|
|
—
|
|
(0.01)
|
|
Net earnings
|
$
2.05
|
|
$
1.83
|
|
$
4.26
|
|
$
3.58
|
|
Diluted net earnings per share:
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
|
$
2.03
|
|
$
1.82
|
|
$
4.23
|
|
$
3.57
|
|
Losses from discontinued operations
|
—
|
|
—
|
|
(0.01)
|
|
(0.01)
|
|
Net earnings
|
$
2.03
|
|
$
1.82
|
|
$
4.22
|
|
$
3.56
|
|
Average number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
115.9
|
|
117.5
|
|
116.3
|
|
118.0
|
|
Diluted
|
116.7
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|
118.3
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|
117.2
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|
118.7
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DARDEN RESTAURANTS, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
|
|
|
11/23/2025
|
|
5/25/2025
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
224.1
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|
$
240.0
|
|
Receivables, net
|
126.1
|
|
93.8
|
|
Inventories
|
354.5
|
|
311.6
|
|
Prepaid income taxes
|
186.0
|
|
135.6
|
|
Prepaid expenses and other current
assets
|
152.7
|
|
156.7
|
|
Total current assets
|
$
1,043.4
|
|
$
937.7
|
|
Land, buildings and equipment, net
|
4,943.6
|
|
4,716.0
|
|
Operating lease right-of-use assets
|
3,560.7
|
|
3,555.9
|
|
Goodwill
|
1,658.2
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|
1,659.4
|
|
Trademarks
|
1,346.4
|
|
1,346.4
|
|
Other assets
|
387.9
|
|
371.6
|
|
Total assets
|
$
12,940.2
|
|
$
12,587.0
|
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
$
460.8
|
|
$
439.6
|
|
Short-term debt
|
438.0
|
|
—
|
|
Accrued payroll
|
188.3
|
|
207.5
|
|
Accrued income taxes
|
1.3
|
|
4.7
|
|
Other accrued taxes
|
93.2
|
|
83.0
|
|
Unearned revenues
|
567.0
|
|
599.4
|
|
Other current liabilities
|
901.9
|
|
913.3
|
|
Total current liabilities
|
$
2,650.5
|
|
$
2,247.5
|
|
Long-term debt
|
2,139.1
|
|
2,128.9
|
|
Deferred income taxes
|
352.4
|
|
278.8
|
|
Operating lease liabilities - non-current
|
3,829.7
|
|
3,816.9
|
|
Other liabilities
|
1,888.1
|
|
1,803.6
|
|
Total liabilities
|
$
10,859.8
|
|
$
10,275.7
|
|
Stockholders' equity:
|
|
|
|
|
Common stock and surplus
|
$
2,298.4
|
|
$
2,295.6
|
|
Retained earnings (deficit)
|
(235.7)
|
|
(16.1)
|
|
Accumulated other comprehensive income
|
17.7
|
|
31.8
|
|
Total stockholders' equity
|
$
2,080.4
|
|
$
2,311.3
|
|
Total liabilities and stockholders'
equity
|
$
12,940.2
|
|
$
12,587.0
|
|
DARDEN RESTAURANTS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In millions)
(Unaudited)
|
|
|
Six Months Ended
|
|
11/23/2025
|
|
11/24/2024
|
|
Cash flows—operating activities
|
|
|
|
|
Net earnings
|
$
495.0
|
|
$
422.3
|
|
Losses from discontinued operations, net of tax
|
0.3
|
|
1.0
|
|
Adjustments to reconcile net earnings from
continuing operations to cash flows:
|
|
|
|
|
Depreciation and amortization
|
273.0
|
|
249.2
|
|
Impairments and (gain) loss on disposal of
assets, net
|
(44.9)
|
|
1.0
|
|
Stock-based compensation expense
|
48.9
|
|
48.9
|
|
Change in current assets and liabilities and
other, net
|
(109.1)
|
|
(60.6)
|
|
Net cash provided by operating activities of
continuing operations
|
$
663.2
|
|
$
661.8
|
|
Cash flows—investing activities
|
|
|
|
|
Purchases of land, buildings and
equipment
|
(375.0)
|
|
(314.5)
|
|
Proceeds from disposal of land, buildings and
equipment
|
24.1
|
|
—
|
|
Cash used in business acquisitions, net of cash
acquired
|
—
|
|
(613.7)
|
|
Purchases of capitalized software and changes
in other assets, net
|
(13.0)
|
|
(11.1)
|
|
Net cash used in investing activities of
continuing operations
|
$
(363.9)
|
|
$
(939.3)
|
|
Cash flows—financing activities
|
|
|
|
|
Net proceeds from issuance of common
stock
|
12.7
|
|
21.8
|
|
Dividends paid
|
(349.0)
|
|
(330.5)
|
|
Repurchases of common stock, inclusive of
excise tax
|
(407.1)
|
|
(314.2)
|
|
Proceeds from short-term debt, net
|
438.0
|
|
188.4
|
|
Proceeds from issuance of long-term debt,
net
|
—
|
|
750.0
|
|
Principal payments on finance leases,
net
|
(9.5)
|
|
(9.7)
|
|
Payments of debt issuance costs
|
—
|
|
(6.9)
|
|
Net cash (used in) provided by financing
activities of continuing operations
|
$
(314.9)
|
|
$
298.9
|
|
|
|
|
|
Cash flows—discontinued operations
|
|
|
|
|
Net cash used in operating activities of
discontinued operations
|
(0.3)
|
|
—
|
|
Net cash used in discontinued operations
|
$
(0.3)
|
|
$
—
|
|
|
|
|
|
Increase (decrease) in cash, cash equivalents,
and restricted cash
|
(15.9)
|
|
21.4
|
|
Cash, cash equivalents, and restricted cash -
beginning of period
|
254.5
|
|
220.1
|
|
Cash, cash equivalents, and restricted cash -
end of period
|
$
238.6
|
|
$
241.5
|
|
|
|
|
|
Reconciliation of cash, cash equivalents, and
restricted cash:
|
11/23/2025
|
|
11/24/2024
|
|
Cash and cash equivalents
|
$
224.1
|
|
$
217.3
|
|
Restricted cash included in prepaid expenses and
other current assets
|
14.5
|
|
24.2
|
|
Total cash, cash equivalents, and restricted
cash shown in the statement of cash flows
|
$
238.6
|
|
$
241.5
|
View original
content:https://www.prnewswire.com/news-releases/darden-restaurants-reports-fiscal-2026-second-quarter-results-declares-quarterly-dividend-and-updates-fiscal-2026-financial-outlook-302645261.html
SOURCE Darden Restaurants, Inc.: Financial