Darden Posts Higher Earnings, Yet Olive Garden’s Growth Slows

An Olive Garden restaurant in Milpitas, California, US, on Tuesday, Dec. 16, 2025.

David Paul Morris | Bloomberg | Getty Images

Darden Restaurants reported mixed quarterly results as same-store sales growth at its fine‑dining concepts and Olive Garden fell short of expectations.

The company’s forecast for fiscal 2027 earnings and revenue aligned with the lower end of Wall Street’s projections.

Shares of the company declined more than 3% in premarket trading.

Here’s what the company reported for its fiscal fourth quarter ended May 31 compared with analyst expectations compiled by LSEG:

• Earnings per share: $3.66 adjusted versus $3.63 expected
• Revenue: $3.72 billion versus $3.73 billion expected

Darden posted net income of $404.9 million, or $3.51 per share, up from $303.8 million, or $2.58 per share, a year earlier.

Excluding costs related to restaurant closures and other items, the company earned $3.66 per share.

Net sales increased 13.7% to $3.72 billion, boosted by an additional week in the fiscal year.

Across all Darden restaurants, same‑store sales rose 4.6%, exceeding StreetAccount’s estimate of 4.1% growth.

LongHorn Steakhouse led the portfolio with same‑store sales growth of 9.5%, surpassing StreetAccount’s projection of 7.1%. The chain has overtaken Olive Garden as Darden’s top performer, though it still represents a smaller portion of overall sales.

Olive Garden’s same‑store sales grew 2.4% in the quarter, missing the expected 3.2% growth.

Darden’s fine‑dining segment posted same‑store sales growth of 1.9%, below StreetAccount’s estimate of 3.1%. The segment includes The Capital Grille and Ruth’s Chris.

The company’s “other business” segment posted same‑store sales growth of 4.6%, outperforming the 3% analysts had projected. This segment includes smaller brands such as Yard House and Chuy’s.

Looking ahead, Darden projects total sales of $13.60 billion to $13.75 billion for fiscal 2027 and net earnings per share from continuing operations of $11.10 to $11.35. Wall Street expects revenue of $13.72 billion and earnings per share of $11.40.

For fiscal 2027, the company expects same‑store sales growth of 2.5% to 3.5% and plans to open between 75 and 80 new locations.

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