Darden Restaurants’ Q4 EPS Beats, Revenue Misses and $1.5B Buyback Program
DRI•Darden Restaurants reported Q4 EPS of $3.66, beating the $3.63 estimate, while revenue of $3.72 billion missed forecasts by 0.4%, and shares fell 3%. The company raised its dividend, launched a $1.5 billion buyback program and set FY2027 guidance at the low end of forecasts with a 2.74 debt-to-equity ratio.
1. Q4 Financial Results
Darden delivered EPS of $3.66, up from $2.98 a year ago and beating estimates by $0.03. Revenue rose 13.7% year-over-year to $3.72 billion but missed forecasts by 0.4%, prompting a roughly 3% drop in share price.
2. Same-Store Sales Trends
Overall same-store sales increased 4.6%, aided by an extra operating week, though key Olive Garden and fine-dining brands underperformed analyst expectations.
3. Shareholder Returns
The board approved a higher cash dividend per share and launched a $1.5 billion share repurchase program to enhance shareholder value.
4. Guidance and Financial Position
Management set FY2027 revenue and earnings guidance at the lower end of analyst ranges and reported a 2.74 debt-to-equity ratio, indicating its current leverage level.
