Darden's President & CEO, Rick Cardenas, expressed pride in the company's performance, stating, "We delivered a strong quarter, continuing to outperform the industry same-restaurant sales benchmark. Our brands, including Olive Garden and LongHorn Steakhouse, significantly exceeded expectations, supported by high team member retention and strong guest satisfaction."
The company reported diluted net earnings per share from continuing operations of $2.68, with adjusted diluted net earnings per share of $2.95, marking a 5.4% increase year-over-year. Darden also repurchased approximately 0.7 million shares of its common stock for a total of $127 million during the quarter, with $516 million remaining under its current $1 billion repurchase authorization.
Looking ahead, Darden updated its financial outlook for fiscal 2026, projecting total sales growth of approximately 9.5%, including about 2% growth related to the addition of a 53rd week. The company anticipates same-restaurant sales growth of approximately 4.5% and plans to open around 70 new restaurants. Total capital spending is expected to range between $750 million and $775 million, with an effective tax rate of approximately 12.5%. Adjusted diluted net earnings per share from continuing operations are projected to be between $10.57 and $10.67, including approximately $0.25 related to the addition of the 53rd week. Darden's strong operational execution and strategic outlook position it well for continued growth in the upcoming fiscal year.
