Darden Restaurants (DRI) Q3 2026 earnings summary

Executive summary

• Total Q3 sales reached $3.3–$3.35 billion, up 5.9% year-over-year, with same-restaurant sales growth of 4.2% and strong performance across all major brands, outpacing industry benchmarks.

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

• Net earnings from continuing operations for Q3 were $310.6 million, with year-to-date sales at $9.49 billion.

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

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

Financial highlights

• Adjusted EBITDA was $579 million; adjusted operating income was $437.7 million; net cash from operations YTD was $1.28 billion.

• Restaurant-level EBITDA margin was 21%, down 30 basis points year-over-year; operating margin for the quarter was 12.1%.

• Adjusted effective tax rate was 12.1% for Q3; year-to-date effective tax rate was 12.9%.

• Capital expenditures for the nine months were $540.9 million, reflecting new restaurant construction and remodels.

• $300 million returned to shareholders in Q3 via dividends and buybacks; $521.5 million in dividends and $534.4 million in repurchases YTD.

Outlook and guidance

• Fiscal 2026 sales growth expected at ~9.5%, with same-restaurant sales growth of ~4.5% and 70 new restaurant openings planned.

• Adjusted diluted EPS guidance for FY26 is $10.57–$10.67, including $0.25 from a 53rd week.

• Q4 sales growth projected at 13–14.5% (includes extra week); Q4 EPS guidance $3.59–$3.69.

• FY27 plans: 75–80 new restaurants, $850 million in capital spend, effective tax rate ~13.5%.

• Total capital spending for FY26 forecasted at $750–$775 million; inflation for FY26 expected at 3.5%.