Darden Restaurants (DRI) Q3 2026 earnings summary

Executive summary

• Total Q3 sales reached $3.3–$3.35 billion, up 5.9% year-over-year, driven by 4.2% same-restaurant sales growth and new restaurant openings.

• Adjusted diluted EPS from continuing operations was $2.95, up 5.4% year-over-year; reported EPS was $2.68.

• All major brands outperformed industry benchmarks, with high guest satisfaction and record team member retention.

• Strategic actions included the sale of Olive Garden Canada, closure/conversion of 14 Bahama Breeze locations, and Chuy's acquisition.

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

Financial highlights

• Adjusted EBITDA was $579 million; adjusted operating income was $437.7 million; net earnings from continuing operations were $310.6 million.

• Restaurant-level EBITDA margin was 21%, down 30 basis points year-over-year.

• Operating income for the quarter was $406.4 million; operating margin was 12.1%.

• Adjusted effective tax rate was 12.1%–12.9%, down from the prior year.

• Net cash provided by operating activities YTD was $1.28 billion.

Outlook and guidance

• Fiscal 2026 sales growth expected at ~9.5%, with 2% from the 53rd week; same-restaurant sales growth at ~4.5%.

• 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.

• 70 new restaurant openings planned for FY26; FY27 outlook: 75–80 new openings, $850 million capital spend.

• Capital expenditures for FY26 forecasted at $750–$775 million; effective tax rate expected at 12.5%.