Darden Restaurants (DRI) investor relations material

Executive summary

• Total Q3 sales reached $3.3 billion, up 5.9% year-over-year, with same-restaurant sales growth of 4.2% and strong performance across all major brands.

• Adjusted diluted EPS from continuing operations was $2.95, up 5.4% year-over-year, and adjusted EBITDA reached $579 million.

• $300 million returned to shareholders via dividends and share repurchases in Q3.

• Team member and manager retention reached all-time highs, supporting operational excellence and guest satisfaction.

• 16–31 new restaurants opened in the quarter, with strong holiday and Valentine's Day sales across brands.

Financial highlights

• Q3 consolidated sales were $3,345.3 million, with adjusted diluted EPS at $2.95 and adjusted EBITDA at $579 million.

• Restaurant-level EBITDA margin was 21%, down 30 basis points year-over-year due to pricing below inflation.

• Adjusted operating income was $437.7 million; adjusted net income was $341.2 million.

• Adjusted effective tax rate was 12.1%, 130 basis points lower than last year.

• Year-to-date sales reached $9,492.1 million, up from $8,805.0 million in the prior year.

Outlook and guidance

• Fiscal 2026 outlook: total sales growth of ~9.5%, same-restaurant sales growth of ~4.5%, and 70 new openings.

• Adjusted diluted net EPS guidance for fiscal 2026: $10.57–$10.67, including $0.25 from the 53rd week.

• Q4 guidance: total sales growth of 13%–14.5%, same-restaurant sales growth of 3.5%–5%, and adjusted EPS of $3.59–$3.69.

• Fiscal 2027: 75–80 new restaurants, $850 million in capital spend, effective tax rate ~13.5%, interest expense ~$200 million.

• Total capital spending for fiscal 2026 forecasted at $750–$775 million.