Darden Restaurants Stock Hits All-Time High on Strong Olive Garden Sales

Darden Restaurants (DRI) reported fiscal Q4 adjusted EPS of $2.98 and revenue of $3.27 billion, exceeding forecasts due to a 4.6% increase in same-store sales, driven by Olive Garden and LongHorn Steakhouse, and the acquisition of Chuy's Tex Mex. The company's board authorized a new share repurchase program of up to $1.0 billion, contributing to DRI's shares reaching an all-time high, up over 20% year-to-date.

Analysis

Darden Restaurants (DRI) reported robust fiscal 2025 fourth-quarter results, with adjusted earnings per share of $2.98 and an 11% year-over-year revenue increase to $3.27 billion, narrowly exceeding Visible Alpha forecasts. This performance was driven by a notable 4.6% uplift in same-restaurant sales, led by strong showings at Olive Garden (+6.9%) and LongHorn Steakhouse (+6.7%), which surpassed expectations. Expansion efforts, including 25 net new restaurant openings and the strategic acquisition of 103 Chuy's Tex Mex locations, significantly bolstered revenues, particularly within the "Other Business" segment that saw a 22% surge to $722.3 million due to Chuy's contribution. Core brands continued their growth trajectory, with Olive Garden's revenue up over 8% to $1.38 billion and LongHorn Steakhouse's revenue increasing 9% to $833.8 million. Further reinforcing investor confidence, Darden's board authorized a new share repurchase program of up to $1.0 billion, coinciding with the stock achieving an all-time high of $228.27 and reflecting a year-to-date gain exceeding 20%.

Key Decisions for Investors

• Investors should evaluate Darden's consistent outperformance, strong same-store sales growth, and successful acquisition integration as key positive indicators for the stock's outlook.
• The significant $1.0 billion share repurchase program enhances the potential for shareholder value creation and could provide support for the share price, making it a point of interest for those with a bullish stance.
• While current momentum is strong, investors should continue to monitor same-restaurant sales figures and the integration progress of new brands in subsequent quarters to affirm the sustainability of growth, especially given the stock's recent appreciation to all-time highs.