Darden Restaurants first-quarter sales rise to $3.2 billion as same-restaurant sales climb

Darden Restaurants, Inc. (DRI) reported financial results Wednesday for its first quarter ended August 30, 2026, showing sales growth across its brand portfolio and a higher quarterly dividend.

Key takeaways

• Total sales increased 5.1% to $3.2 billion from a year earlier.
• Diluted net earnings per share from continuing operations were $2.05.
• The company repurchased $222.3 million of its common stock during the quarter.
• A quarterly cash dividend of $1.62 per share was declared for shareholders.
• The company reaffirmed its full year financial outlook for fiscal 2027.

First-quarter results

Here's how the company did:

• Sales were $3.2 billion, up from $3.04 billion in the same period a year earlier.
• Diluted net earnings per share from continuing operations were $2.05, compared with $2.19 reported in the prior year period, or $1.97 on an adjusted basis.
• Net earnings were $233.4 million, compared with $257.8 million a year earlier.
• Blended same-restaurant sales increased 3.1% on a fiscal calendar basis and 3.2% on a comparable calendar basis.

"The first quarter was a solid start to our fiscal year with each of our segments delivering positive same-restaurant sales," said Darden President & CEO Rick Cardenas in a statement. "The performance across our portfolio reinforces the importance of having distinctive brands, each with a clear strategy, supported by Darden’s scale and other competitive advantages."

Segment performance and restaurant counts

Olive Garden sales reached $1.32 billion, up from $1.30 billion a year earlier, with segment profit of $270.8 million. LongHorn Steakhouse sales rose to $860.9 million from $776.4 million, generating segment profit of $154.6 million. Fine Dining sales were $304.2 million with segment profit of $39.6 million. Other Business sales totaled $705.4 million with segment profit of $111.5 million.

Total company-owned restaurants across continuing operations reached 2,218 locations as of August 30, 2026, compared with 2,165 locations a year earlier. This included 953 Olive Garden locations, 624 LongHorn Steakhouse restaurants, 187 Cheddar’s Scratch Kitchen locations, 112 Chuy’s restaurants, 95 Yard House locations, 83 Ruth’s Chris Steak House locations, 75 The Capital Grille locations, 44 Seasons 52 locations, 32 Eddie V’s locations, 10 Bahama Breeze locations, and 3 The Capital Burger locations.

Dividends and share repurchases

Darden’s Board of Directors declared a quarterly cash dividend of $1.62 per share on the company’s outstanding common stock. The dividend is payable on November 2, 2026, to shareholders of record at the close of business on October 9, 2026.

During the quarter, the company repurchased approximately 1.1 million shares of its common stock for a total of $222.3 million, which includes a 1% excise tax incurred on net repurchases resulting from the Inflation Reduction Act of 2022. As of the end of the fiscal first quarter, the company had $1.3 billion remaining under its current $1.5 billion repurchase authorization.

Financial outlook and guidance

The company reaffirmed all aspects of its full year financial outlook for fiscal 2027, culminating in diluted net earnings per share from continuing operations of $11.10 to $11.35, according to a regulatory filing.

Why it matters

The quarter reflects consistent demand across casual dining brands, with LongHorn Steakhouse leading segment growth through strong same-restaurant sales gains. Capital allocation remains active through share repurchases and cash returns to shareholders, while ongoing portfolio management includes winding down or converting Bahama Breeze locations by the fourth quarter of fiscal 2027.

By the numbers

Capital deployment and upcoming dates

The company continues to execute its capital allocation strategy through ongoing share repurchases and dividend distributions. Shareholders of record on October 9, 2026, will receive the declared dividend payment on November 2, 2026.