Darden Restaurant On Friday, Olive Garden parents predicted solid growth for 2026, breaking Wall Street revenue and revenue estimates.
Based on an analyst survey by LSEG, the company reported the following compared to what Wall Street had expected:
- Earnings per share: Adjustment of $2.98 and forecast of $2.97
- Revenue: $3.27 billion vs. $3.26 billion
Darden reported fourth-quarter net income of $333.8 million, or $2.58 per share, compared to the previous year’s $308.1 million ($2.58 per share).
Excluding the costs associated with Chuy’s acquisition of Tex Mex, Darden won $2.98 per share for the three months ended May 25th.
Net sales increased 10.6% to $3.3 billion, partially driven by the acquisition of 103 Chui restaurants and 25 new online restaurants.
The Florida-based company’s same store saw sales increase by 4.6%, with StreetAccount estimates shattering 3.5%.
For all accountants in 2026, Darden forecasts revenue growth of 7% to 8%, including about 2% growth associated with having an extra week of the year. Adjusted revenue is expected to range from $10.50 to $10.70 per share, including 20 cents associated with additional weeks.
Despite signs that consumers are pulling back their spending, Darden Restaurant CEO Rick Cardenas said in a call with analysts on Friday that consumers continue to spend on casual meals.
“Our consumers want to go out and spend their hard-earned money, and I think we’re taking a share of our wallets from fast food and fast casual,” he said.
Darden’s two standout brands, Olive Garden and Longhorn Steakhouse, reported sales growth for the same store that beat expectations. Olive Garden, which accounts for around 40% of Dardan’s quarterly revenue, saw sales increase at the same store by 6.9%, breaking analysts’ 4.6% forecasts. The same Longhorn store sales increased 6.7%, while analysts expected growth of 5.3%.
Cardenas praised Darden’s sales during the quarter for the revival of Olive Garden’s “Buy One Take One” deal five years later.
Darden’s luxury dining segment, including Ruth’s Chris Steak House and Capital Grille, reported a 3.3% decline in sales at the same store, compared to the expected 0.2% drop.
CFO Raj Vennam told analysts in a call on Friday that the entire fine dining restaurant continues to be challenged, but the company told the company that guest traffic from households making more than $150,000 is improving.
The remaining segments of the company, including Cheddar’s scratch kitchen and yard house, saw sales growth of 1.2% for the same store, compared to an estimate of 1.1%.
In March, Cheddar’s Scratch Kitchen became the next Darden brand after Olive Garden. delivery Through partnership with Uber Direct. As of last week, Cardenas said delivery is possible for all but eight Cheddar restaurants as of last week.
In addition to closing 15 Bahamas Breeze restaurants during the quarter, Cardenas said the company will consider a “strategic alternative” to the entire Bahamas Breeze brand, including converting potential sales and locations to other Darden brands.
He said in the call that the Bahamas Breeze brand is not a “strategic priorities” for Darden and could benefit from the new owner.
The company also announced Wednesday that its board approved a $1 billion share repurchase program that had no expiration date and would replace the previous existing share repurchase approval.
Darden Restaurant stocks rose more than 1% in Friday’s trading. As of the end of Wednesday, shares had risen about 19% a year.
