Darden Restaurants delivered strong Q4 FY25 results, driven by robust same-store sales at Olive Garden and LongHorn, plus successful Uber Direct partnerships. Management's FY26 guidance calls for 7-8% sales growth, 2-3.5% same-store sales gains, and 60-65 new restaurant openings, supporting continued margin expansion. Valuation models suggest a $240 price target, offering 6% upside, with total annual returns near 10% when including dividends and buybacks.
There are several reasons Darden Restaurants' NYSE: DRI stock price can trend higher this year, including, but not limited to, top- and bottom-line outperformance, guidance, growth, acceleration, the dividend, and share buybacks. The net result is a strong tailwind for the price action, which is gaining momentum.
Darden Restaurants continues to outperform, driven by strong Olive Garden and LongHorn growth, margin expansion, and resilient consumer demand. Management is focusing on core brands, closing underperforming concepts, and expanding internationally through capital-light franchising for incremental growth. Guidance is robust, with 7-8% revenue growth, higher EPS targets, a 7% dividend boost, and a new $1 billion buyback authorization supported by strong free cash flow.
Darden Restaurants, Inc. (NYSE:DRI ) Q4 2025 Earnings Conference Call June 20, 2025 8:30 AM ET Company Participants Courtney Aquilla - Corporate Participant Rajesh Vennam - Senior VP & CFO Ricardo Cardenas - CEO, President & Director Conference Call Participants Andrew Strelzik - BMO Capital Markets Equity Research Andrew Michael Charles - TD Cowen, Research Division Brian James Harbour - Morgan Stanley, Research Division Brian Michael Vaccaro - Raymond James & Associates, Inc., Research Division Christopher Thomas O'Cull - Stifel, Nicolaus & Company, Incorporated, Research Division Danilo Gargiulo - Sanford C. Bernstein & Co., LLC.
DRI stock rises as fiscal fourth-quarter earnings and sales top estimates, fueled by strong comps and new restaurant contributions.
Darden Restaurants Inc (NYSE:DRI), the parent company of popular dining chains including Olive Garden and LongHorn Steakhouse, saw its shares move higher on Friday as it reported better-than-expected financial results for the fiscal fourth quarter. Revenue for the quarter ending May 25 was up 10.6% from the year-ago quarter to $3.27 billion, ahead of the Wall Street consensus estimate of $3.26 billion.
Shares of Darden Restaurants (DRI) traded at an all-time high Friday as the restaurant chain operator beat earnings and revenue estimates and announced a new stock buyback as it got a boost from same-restaurant sales and growth in the number of locations.
Darden Restaurants, Inc. ( NYSE:DRI) stock hit a record high of $228.27 out of the gate today, and was last seen up 1.6% at $226.29, following a well-received earnings report and a shareholder-friendly announcement.
The headline numbers for Darden Restaurants (DRI) give insight into how the company performed in the quarter ended May 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Darden Restaurants (DRI) came out with quarterly earnings of $2.98 per share, beating the Zacks Consensus Estimate of $2.96 per share. This compares to earnings of $2.65 per share a year ago.
Darden Restaurants beat Wall Street's earnings and revenue estimates. Darden's two standout brands, Olive Garden and LongHorn Steakhouse, reported same-store sales growth that beat expectations.
ORLANDO, Fla. , June 20, 2025 /PRNewswire/ -- Darden Restaurants, Inc. (NYSE:DRI) today reported its financial results for the fourth quarter and fiscal year ended May 25, 2025.