Darden Restaurants reported a rise in customer visits at its higher-end brands during the latest quarter and subsequently increased its financial outlook for fiscal year 2026.
Growth in Upscale Segment
The company, which owns Olive Garden and LongHorn Steakhouse, noted that its fine dining chains, including The Capital Grille and Eddie V’s, experienced a 2.5% increase in same-restaurant sales for the fourth quarter ended May 26. This growth outpaced the company’s overall same-restaurant sales, which declined by 1% during the same period.
Performance Across Brands
Olive Garden, Darden’s largest brand, saw a 1.5% decrease in same-restaurant sales, while LongHorn Steakhouse posted a 0.2% decline. Darden attributed the improvement in its upscale brands to increased guest counts, with CEO Rick Cardenas stating, “We continue to see strength in our fine dining brands, which are benefiting from increased guest counts.”
Financial Results and Outlook
For the fourth quarter, Darden reported total sales of $2.96 billion, up from $2.77 billion a year earlier. Net earnings for the quarter were $308.1 million, or $2.57 per share, compared to $315.1 million, or $2.58 per share, in the prior year.
The company raised its fiscal 2026 earnings per share guidance to a range of $9.40 to $9.60, up from its previous forecast of $9.30 to $9.50. Darden also reaffirmed its expectation for fiscal 2025, projecting earnings per share between $9.40 and $9.60.
Expansion Plans
Darden stated it plans to open 45 to 50 new restaurants in fiscal 2025, maintaining its previous expansion target.
