June 25th, 2026

The call presented a largely positive operational and financial picture: strong top-line growth, robust same-restaurant sales outperformance versus industry, notable brand-level momentum (especially LongHorn and Olive Garden), solid earnings and cash returns to shareholders, and continued unit growth and international franchising. Headwinds include elevated commodity (notably beef) inflation that compressed restaurant-level margins for the year, one-time conversion and pre-opening costs, some younger-guest softness, and near-term fuel/utility impacts. Management provided a constructive FY2027 outlook with moderate same-restaurant sales guidance (2.5%–3.5%), continued unit growth, and EPS guidance above FY2026 levels, while signaling confidence in cost management and franchise expansion. Overall, positives (growth, margin recovery in Q4, cash returns, brand momentum, disciplined strategy) outweigh the lowlights (inflation, conversion costs, cohort softness), supporting a favorable outlook.

Company Guidance

For fiscal 2027 Darden guided total sales of $13.6–13.75 billion, same-restaurant sales growth of 2.5%–3.5% (flat to positive traffic), 75–80 gross restaurant openings plus 11 Bahama Breeze conversions, capital spending of ~ $875 million, total inflation of ~3% (commodities ~3%, labor ~3.5%), EBITDA of $2.26–2.29 billion, diluted net EPS of $11.10–11.35 on roughly 114 million diluted shares, an annual effective tax rate of ~13.5%, and an 8% raise to the quarterly dividend to $1.52 ($6.48 annual); the outlook assumes ~3% pricing, includes ~ $25 million of incremental marketing (≈10 bps) with ~$5–6 million of cost saves, and contemplates roughly $15 million (≈$0.10 EPS) of pre-opening/year-one inefficiencies with EBITDA margin flat to slightly positive.