Darden Beats Q4 EPS at $3.66, Guides 2027 Revenue of $13.6–13.75B
DRI•Darden’s Q4 adjusted EPS was $3.66 versus $3.63 expected, with net sales up 13.7% to $3.72 billion and blended same-store sales rising 4.6% (Olive Garden +2.4%, LongHorn +9.5%). For fiscal 2027, it guides $13.60–13.75 billion revenue and EPS of $11.10–11.35, missing estimates, while raising its dividend 8% and authorizing a $1.5 billion buyback.
1. Q4 Financial Performance
Darden reported adjusted earnings per share of $3.66, surpassing the $3.63 consensus, while net sales grew 13.7% to $3.72 billion, aided by an extra week in the fiscal calendar. Net income rose to $404.9 million from $303.8 million a year earlier.
2. Same-Store Sales Breakdown
Blended same-store sales increased 4.6% in the quarter. Olive Garden delivered 2.4% growth below the 3.2% target, LongHorn Steakhouse achieved 9.5% growth above the 7.1% forecast, the fine-dining segment grew 1.9% and smaller chains rose 4.6%.
3. Fiscal 2027 Outlook
For the next fiscal year, Darden expects revenue of $13.60 to $13.75 billion and EPS of $11.10 to $11.35, both trailing consensus estimates. The company anticipates 2.5% to 3.5% same-store sales growth and plans to open between 75 and 80 new restaurants.
4. Capital Return Programs
The board declared a quarterly cash dividend of $1.62 per share, an 8% increase from the prior quarter, and authorized a new $1.5 billion share repurchase program to enhance shareholder value.
