Darden Restaurants, Inc. operates a portfolio of well-known restaurant brands, including Olive Garden, LongHorn Steakhouse, and Ruth’s Chris Steak House. For the fiscal fourth quarter of 2025, Darden reported strong financial performance, continuing its stable upward trajectory. Total sales reached $3.3 billion, marking a 10.6% increase compared to the prior year, driven by 4.6% growth in same-restaurant sales, positive guest traffic, and contributions from recent acquisitions.

Darden’s adjusted diluted earnings per share from continuing operations rose 12.5% to $2.98, while reported diluted earnings per share were $2.58. The company returned $215 million to shareholders, comprising $164 million in dividends and $51 million in share repurchases. Adjusted EBITDA for the quarter was $582 million, representing a profit margin improvement of 50 basis points to 21.6%.

Examining key segments, Olive Garden recorded total sales of $1.4 billion, reflecting an 8.1% increase, combined with strong same-restaurant sales growth of 6.9%. For this quarter, Olive Garden’s profit margin reached 23.8%, up by 100 basis points year-over-year. LongHorn Steakhouse generated $833.8 million in total sales, with same-restaurant sales growth of 6.7% and a profit margin of 20.1%, an increase of 80 basis points from the previous year.

In the fine dining segment, total sales increased to $334.6 million, while same-restaurant sales declined by 3.3%. The profitability in this segment was lower than last year, reflecting ongoing challenges faced by the fine dining category. The Other Business segment, buoyed by the acquisition of 103 Chuy’s restaurants, saw sales increase by 22.4% year-over-year, although the segment experienced some closures that affected overall performance.

For fiscal 2025, Darden achieved a total sales increase of 6% to $12.1 billion with a consolidated same-restaurant sales growth of 2%. Adjusted diluted earnings per share rose by 7.5% to $9.55, while total capital expenditures were between $700 million and $750 million. The company anticipates total sales growth of 7% to 8% for fiscal 2026, including an estimated 2% contribution from a 53rd week.

Inflation for the upcoming fiscal year is projected between 2.5% and 3%, with a total effective tax rate around 13%. Capital spending is expected for new restaurant openings ranging from 60 to 65 locations. Additionally, Darden’s Board of Directors authorized a new share repurchase program of up to $1 billion, further reflecting its commitment to returning capital to shareholders.