Darden Restaurants, Inc. (NYSE:DRI) reported its financial results on Thursday for the fourth quarter and fiscal year ended May 31.
The company reported quarterly adjusted earnings of $3.66 per share, which beat the analyst consensus estimate of $3.63 per share. This figure marks an increase over the earnings of $2.98 per share from the same period last year.
The company posted quarterly sales of $3.719 billion, missing the analyst consensus estimate of $3.728 billion, according to Benzinga Pro.
Total sales increased 13.7% from $3.271 billion in the prior year’s fourth quarter, driven by a 7.6% sales lift from a 53rd week of operations, a 4.6% increase in blended same-restaurant sales, and contributions from 43 net new restaurants.
Cash and cash equivalents stood at $219.5 million, down from $240 million last year.
“The fourth quarter was a strong finish to an excellent year, one in which we significantly outperformed the industry,” said Darden President and CEO Rick Cardenas.
Darden Restaurants Fiscal 2027 Financial Outlook
Darden issued its full-year financial outlook for fiscal 2027. The company expects total sales of $13.60 billion to $13.75 billion, while analysts estimate $13.718 billion.
The company plans 75 to 80 new restaurant openings with total capital spending of approximately $875 million. Expected total inflation is pegged at 3%, with an effective tax rate of 13.5%.
Diluted earnings per share from continuing operations are forecast at $11.10 to $11.35, compared with analysts’ estimate of $11.37. At the same time, EBITDA is expected to range from $2.26 billion to $2.29 billion, based on approximately 114 million weighted average diluted shares outstanding.
Dividend Increase and $1.5B Share Repurchase
Darden’s Board of Directors declared a quarterly cash dividend of $1.62 per share, representing an 8% increase from the third quarter of fiscal 2026. The dividend is payable on August 3 to shareholders of record on July 10.
During the quarter, the company repurchased 0.7 million shares of common stock for $138 million. On Wednesday, June 24, the Board authorized a new share repurchase program of up to $1.5 billion, replacing the previous authorization and carrying no expiration date.
“Our strong operating model generates significant and durable cash flows,” said Darden CFO Raj Vennam.
Segment Performance and Financial Highlights
Blended same-restaurant sales grew 4.6% during the quarter. Segment breakdown showed LongHorn Steakhouse led growth with a 9.5% increase, followed by Olive Garden at 2.4%, Fine Dining at 1.9%, and Other Business at 4.6%.
Reported diluted net earnings per share from continuing operations were $3.54. Excluding 12 cents of costs related to restaurant closures, impairments, and the Chuy’s integration, adjusted diluted net earnings per share were $3.66. The extra week of operations contributed 25 cents to both metrics.
Darden Restaurants Price Action
DRI Stock Price Activity: Darden Restaurants shares were down 3.35% at $206.30 during premarket trading on Thursday, according to Benzinga Pro data.
Photo by JHVEPhoto via Shutterstock
