Darden Raises Fiscal 2026 EPS Guidance to $10.57–$10.67, Q3 Sales Up 5.9%
Darden Restaurants posted third-quarter sales of $3.345 billion, up 5.9% driven by a 4.2% same-restaurant sales gain and additions from 31 net new locations while repurchasing $127 million of stock. Reported EPS was $2.68, $2.95 adjusted (+5.4%), and a $1.50 quarterly dividend was declared with full-year EPS guidance raised to $10.57–$10.67.
1. Q3 Sales and Comps
Darden’s third-quarter revenue reached $3.345 billion, a 5.9% increase from last year. Consolidated same-restaurant sales rose 4.2%, led by LongHorn Steakhouse at 7.2% and Olive Garden at 3.2%, while 31 net new restaurants contributed an additional 4.2% sales lift.
2. Earnings and Adjustments
Reported diluted net earnings per share were $2.68, while adjusted EPS excluding $0.27 of non-recurring costs totaled $2.95, up 5.4%. Adjustments included $0.16 of impairment charges, $0.05 of closed-restaurant costs and $0.06 of tax adjustments.
3. Dividend and Share Repurchase
The board declared a $1.50 quarterly cash dividend payable May 1, 2026, to shareholders of record April 10, 2026. During the quarter, Darden repurchased $127 million of common stock, leaving $516 million available under its $1 billion repurchase authorization.
4. Fiscal 2026 Outlook
For the full year, Darden forecasts approximately 9.5% total sales growth (including a 2% benefit from a 53rd week), same-restaurant sales up ~4.5%, about 70 new restaurant openings, $750–$775 million in capital spending, ~3.5% inflation and adjusted EPS of $10.57–$10.67.