Darden Restaurants reported its financial results for the second quarter of fiscal year 2026, showing a 7.3% increase in total sales to $3.1 billion.
The company achieved positive same-restaurant sales across all segments, with Olive Garden leading at 4.7% and LongHorn Steakhouse at 5.9%.
Adjusted diluted net earnings per share from continuing operations rose by 2.5% to $2.08, demonstrating sustained growth and financial strength.
Total Sales Increase
Total sales rose by 7.3% driven by a 4.3% increase in same-restaurant sales and new restaurant contributions.
Earnings Performance
Adjusted diluted net earnings per share increased by 2.5% to $2.08, showcasing profitability and financial stability.
Dividend Declaration
A quarterly cash dividend of $1.50 per share was declared for shareholders, underlining the company's commitment to rewarding investors.
Share Repurchase Program
The company repurchased $222 million of its common stock during the quarter, enhancing shareholder value and confidence.
Financial Outlook Update
The updated fiscal 2026 outlook projects total sales growth of 8.5% to 9.3%, with an effective tax rate of approximately 13% and adjusted diluted net earnings per share of $10.50 to $10.70.
- Darden Restaurants exceeded top-line expectations in the second quarter, driven by positive same-restaurant sales across all segments.
- The company's strategic investments and focus on guest satisfaction resulted in strong financial performance amidst commodity headwinds.
- Shareholders can be confident in Darden's ability to deliver consistent value and growth, supported by a robust financial outlook for fiscal 2026.
Darden Restaurants' second quarter performance reflects resilience and strategic execution in a challenging market environment. The company's commitment to driving growth and shareholder value positions it strongly for the future.