Darden Restaurants Q4 Earnings Beat and FY2027 Outlook

Darden Restaurants Inc. reported adjusted diluted earnings per share of $3.66 for its fiscal fourth quarter ended May 31, surpassing the analyst consensus of $3.63 by three cents. Revenue for the quarter was $3.72 billion, marginally below the consensus estimate of $3.73 billion. The quarter included a 53rd week of operations, which added $0.25 to both reported and adjusted diluted EPS figures.

Total sales increased 13.7% year‑over‑year, driven by the additional week, a blended same‑restaurant sales rise of 4.6%, and the opening of 43 net new restaurants. By brand, same‑restaurant sales grew 9.5% at LongHorn Steakhouse, 4.6% in the Other Business segment, 2.4% at Olive Garden, and 1.9% in Fine Dining. Adjusted diluted EPS for the quarter rose 22.8% from the prior year.

For the full fiscal year, Darden posted total sales of $13.21 billion, a 9.4% increase, with blended same‑restaurant sales up 4.5%. Adjusted diluted EPS for the year was $10.64, reflecting an 11.4% rise.

Looking ahead to fiscal 2027, the company forecast total sales between $13.60 billion and $13.75 billion and diluted EPS from continuing operations between $11.10 and $11.35, both comfortably above Wall Street consensus estimates of $13.22 billion in revenue and $10.62 in EPS. The guidance also includes same‑restaurant sales growth of 2.5% to 3.5%, 75 to 80 new restaurant openings, EBITDA of $2.26 billion to $2.29 billion, total capital spending of approximately $875 million, and total inflation of roughly 3.0%.

The board declared a quarterly cash dividend of $1.62 per share, an 8.0% increase from the prior quarter, payable on August 3 2026 to shareholders of record as of July 10 2026. Directors also authorized a new share repurchase program of up to $1.5 billion with no expiration date, replacing the prior authorization. During the quarter, Darden repurchased approximately 0.7 million shares for $138 million.

Despite the earnings beat and upbeat guidance, Darden’s shares slipped in pre‑market trading on Thursday.