Darden Restaurants (DRI) Q2 2026 earnings summary

Executive summary

• Total sales rose 7.3% year-over-year to $3.1 billion in Q2 FY26, with all segments posting positive same-restaurant sales and continued industry outperformance.

• Adjusted diluted EPS from continuing operations was $2.08, up 2.5% year-over-year, and adjusted EBITDA reached $466 million.

• Opened 30 net new restaurants, including 17 ahead of plan, and completed the Chuy's acquisition.

• Maintained pricing below inflation, prioritizing guest value despite elevated commodity costs, especially beef.

• Continued investment in operational improvements, guest satisfaction, and digital initiatives like first-party delivery.

Financial highlights

• Q2 consolidated sales reached $3.1 billion, up 7.3% year-over-year, driven by 4.3% same-restaurant sales growth, new restaurants, and the Chuy's acquisition.

• Adjusted EBITDA was $466 million; adjusted diluted EPS was $2.08; restaurant-level EBITDA margin was 18.7%.

• Operating income for Q2 was $320.4 million, up 9.7% year-over-year.

• $396 million returned to shareholders via dividends and share repurchases in Q2.

• Net cash provided by operating activities was $663.2 million for the six months.

Outlook and guidance

• Fiscal 2026 guidance: total sales growth of 8.5%-9.3%, same-restaurant sales growth of 3.5%-4.3%, 65-70 new openings, and capital spending of $750M-$775M.

• Adjusted diluted EPS expected at $10.50-$10.70, including $0.20 from a 53rd week.

• Effective tax rate expected at 13%.