Darden Restaurants (DRI) Announces Fiscal 2025 Third Quarter Earnings Results; Declares Quarterly Dividend; And Updates Fiscal 2025 Financial Outlook

Darden Restaurants, Inc. (DRI) today announced its financial results for the fiscal quarter ended recently. The company reported quarterly revenue of $3.158 billion, meeting expectations, and quarterly diluted earnings per share of $2.74, also meeting projections. These results reflect the company’s steady performance in the competitive restaurant industry.

Key Highlights:

• Total sales increased by 6.2% to $3.2 billion, driven by a 0.7% increase in same-restaurant sales and the acquisition of 103 Chuy’s restaurants and 40 net new restaurants.
• Adjusted diluted net earnings per share from continuing operations rose by 6.9% to $2.80.
• Darden repurchased $53 million of its outstanding common stock.
• The company declared a quarterly cash dividend of $1.40 per share.
• Fiscal 2025 financial outlook includes total sales of approximately $12.1 billion and same-restaurant sales growth of approximately 1.5%.
• New restaurant openings are projected to be between 50 to 55, with total capital spending of approximately $650 million.

Summary:

Darden Restaurants reported a strong fiscal third quarter for 2025, with total sales increasing by 6.2% to $3.2 billion. This growth was primarily driven by a 0.7% increase in same-restaurant sales and the strategic acquisition of 103 Chuy’s restaurants and 40 net new restaurants. The company’s adjusted diluted net earnings per share from continuing operations rose by 6.9% to $2.80, reflecting effective cost management and strategic growth initiatives. Darden’s President & CEO, Rick Cardenas, expressed pride in the company’s performance, stating, “Our ability to deliver profitable sales growth in a challenging environment is a testament to the strength of our business model and adherence to our proven strategy.”

Looking ahead, Darden has updated its fiscal 2025 financial outlook, projecting total sales of approximately $12.1 billion and same-restaurant sales growth of about 1.5%. The company plans to open 50 to 55 new restaurants and anticipates total capital spending of around $650 million. Additionally, Darden declared a quarterly cash dividend of $1.40 per share and repurchased $53 million of its outstanding common stock. The company remains focused on leveraging its diverse brand portfolio and maintaining strong guest loyalty to drive future growth.

Darden Restaurants, Inc. (DRI) has experienced a mixed bag of price changes over the past year, with a notable 11.93% increase over the last twelve months, despite a recent dip of 4.42% in the past month. This fluctuation could be attributed to market volatility or investor sentiment shifts, but the company’s strong fundamentals provide a solid foundation for future growth. With a price-to-earnings ratio of 21.42, Darden is positioned competitively within its industry, suggesting that investors are willing to pay a premium for its earnings. The company’s earnings per share (EPS) has grown at a robust 11.88% over the past two years, while its revenue has increased by 7.69% in the same period, indicating healthy business expansion. Furthermore, Darden’s free cash flow has surged by an impressive 22.27%, underscoring its ability to generate cash and potentially return value to shareholders. The return on invested capital stands at a solid 12.61%, reflecting efficient use of capital, and a net profit margin of 8.97% highlights its profitability. Overall, while short-term price movements may cause some concern, Darden’s strong financial metrics suggest a promising long-term outlook.

Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 29, 2022, it owned and operated 1,867 restaurants, which included 884 under the Olive Garden brand, 546 under the LongHorn Steakhouse brand name, 172 under the Cheddar’s Scratch Kitchen brand, 85 under the Yard House brand name, 62 under The Capital Grille brand, 45 under the Seasons 52 brand name, 42 under the Bahama Breeze brand, 28 under the Eddie V’s Prime Seafood brand name, and 3 under the Capital Burger brand; and franchised 60 restaurants comprising 35 under the Olive Garden brand, 18 under the LongHorn Steakhouse brand name, 4 under the Cheddar’s Scratch Kitchen brand, 2 under The Capital Grille brand name, and 1 under the Bahama Breeze brand.Darden Restaurants, Inc. was founded in 1968 and is based in Orlando, Florida.