Darden Restaurants (DRI) Q3 2025 earnings summary

Executive summary

• Total sales rose 6.2% year-over-year to $3.2 billion in Q3, driven by a 0.7% blended same-restaurant sales increase, new restaurant openings, and the Chuy's acquisition.

• Adjusted diluted net EPS from continuing operations was $2.80, up 6.9% year-over-year, with adjusted EBITDA at $559 million.

• Olive Garden and LongHorn Steakhouse outperformed industry benchmarks, aided by menu promotions, delivery expansion, and operational execution.

• The integration of Chuy's is progressing, with HR, supply chain, and POS transitions scheduled through summer.

• New, smaller restaurant prototypes for Yard House and Cheddar's are performing at or above expectations, supporting future unit growth.

Financial highlights

• Consolidated Q3 sales were $3,158 million, up from $2,974.8 million in Q3 2024, with adjusted EBITDA of $559 million.

• Adjusted diluted net EPS was $2.80, and adjusted earnings from continuing operations were $330 million, representing 10.5% of sales.

• Restaurant-level EBITDA margin improved by 50 basis points year-over-year to 21.1%.

• Operating income for Q3 was $418.2 million, up 8% year-over-year.

• $217 million was returned to shareholders via dividends and share repurchases in Q3.

Outlook and guidance

• Fiscal 2025 guidance: total sales expected at ~$12.1 billion, same-restaurant sales growth of ~1.5%, and adjusted diluted net EPS of $9.45–$9.52, excluding $47 million in Chuy's transaction/integration costs.

• Q4 outlook: total sales of $3.23–$3.26 billion, same-restaurant sales growth above 3%, and adjusted diluted net EPS of $2.88–$2.95.

• 50–55 new restaurant openings and capital spending of ~$650 million planned for FY25; FY26 plans include 60–65 new restaurants and a 53rd week adding ~$0.20 EPS.

• Effective tax rate anticipated at approximately 12.5%.