Darden Restaurants, Inc. (DRI)

Darden reported first-quarter fiscal 2027 sales of $3.2 billion on 24 September 2026, up 5.1 percent 2.

Same-restaurant sales, the sales of restaurants open long enough to compare fairly, rose 3.1 percent across the company 2. LongHorn Steakhouse rose 6.2 percent, while Olive Garden rose 1.1 percent 2.

Diluted earnings per share from continuing operations were $2.05 2. The company reaffirmed its fiscal 2027 outlook of $11.10 to $11.35 per share 2.

On 22 October 2026 Darden signed a new $1.5 billion bank credit line, which matures in 2031 4.

Bahama Breeze is being closed or converted to other Darden brands by the fourth quarter of fiscal 2027 2. Two conversions were done by the end of the first quarter 3.

Darden is a Florida company incorporated in March 1995 1. It became a separate public company that year, when General Mills handed out all of its Darden stock to General Mills stockholders 1.

Its operating subsidiary began in 1968 as Red Lobster Inns of America, and General Mills bought the business in 1970 1.

Olive Garden is the company's own creation, and its first restaurant opened in Orlando in 1982 1. Darden then bought brands: it added LongHorn Steakhouse and The Capital Grille in October 2007 through the RARE Hospitality purchase 1; Yard House followed in August 2012 and Cheddar's Scratch Kitchen in April 2017 1.

The pandemic hit fiscal 2021 hardest, as from late March 2020 the company ran with all of its dining rooms closed 5. Sales from continuing operations fell 7.8 percent to $7.20 billion, mainly because same-restaurant sales dropped 7.8 percent 5.

Sales then recovered to $10.49 billion in fiscal 2023 and $11.39 billion in fiscal 2024 6. In June 2023 Darden bought Ruth's Chris Steak House for $724.6 million, adding 77 company-owned restaurants 6.

In October 2024 Darden bought Chuy's Holdings, a Tex-Mex chain, for $649.1 million in cash 1. Fiscal 2025 sales rose 6.0 percent to $12.08 billion, helped by 103 net company-owned Chuy's restaurants 7.

Fiscal 2026 had 53 weeks, and sales rose 9.4 percent to $13.21 billion, helped by the extra week, 4.5 percent same-restaurant growth and 43 net new restaurants 1. Net earnings from continuing operations rose to $1.21 billion from $1.05 billion 1.

Darden also pruned: on 14 July 2025 it sold its eight Olive Garden restaurants in Canada to Recipe Unlimited, which now operates them under a franchise deal 1. In June 2025 it began a review of Bahama Breeze, and in February 2026 it chose to close about half the restaurants and convert the rest 1.

Olive Garden

Olive Garden is the largest full-service Italian restaurant operator in the United States 1. It had 949 company-owned restaurants at the end of fiscal 2026 and sales of $5,594.8 million, up 7.3 percent 1.

Most dinner entrees cost $12.50 to $24.00 and include as much salad or soup and breadsticks as a guest wants 1.

LongHorn Steakhouse

LongHorn is a steakhouse brand mostly in the eastern United States, with 618 restaurants and sales of $3,423.0 million, up 13.1 percent 1. In the first quarter its segment profit rose to $154.6 million from $134.9 million 2.

Segment profit is sales less food and beverage, restaurant labor, restaurant expenses and marketing costs 2.

Fine Dining

Fine Dining groups Ruth's Chris, The Capital Grille and Eddie V's, with sales of $1,375.7 million in fiscal 2026 1. At Ruth's Chris most dinner entrees cost $40.00 to $92.00, and the average check was about $104.00 per person 1.

Other Business

Other Business holds Yard House, Cheddar's Scratch Kitchen, Chuy's, Seasons 52, Bahama Breeze, The Capital Burger and franchise fees, with sales of $2,817.4 million 1. Yard House is known for over 100 draft beer offerings, and alcohol is 28.9 percent of its sales 1.

Bahama Breeze fell from 28 restaurants to 13 during fiscal 2026 as the wind-down began 1.

Sites, people and costs

On 31 May 2026 Darden owned and operated 2,202 restaurants in the United States, and independent operators ran another 167 under franchise and similar deals 1. Of its own, 98 sat on owned sites and 2,104 on leased sites 1.

It had 209,931 team members at the end of fiscal 2026, of whom 198,111 were hourly 1. Restaurant labor cost $4,182.4 million, up 9.1 percent, and food and beverage cost $4,038.8 million, up 10.4 percent 1.

The company says it competes with national and regional chains and locally owned restaurants for guests 1.

The umbrella, in words

Darden describes its brands as Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Chuy's, Seasons 52 and Eddie V's 2.

Exhibit 21 names GMRI, Inc., which does business as Olive Garden, Bahama Breeze and Seasons 52, as a significant subsidiary 8. RARE Hospitality International runs LongHorn Steakhouse, and Yard House USA runs Yard House 8.

Darden owns 100 percent of Chuy's Holdings, bought in October 2024 1. It also jointly owns one Yard House with a third party 1.

Under an agreement with Recipe Unlimited, that company operates Olive Garden restaurants in Canada and pays royalties 1. Darden reported about 7,001 holders of record of its common shares on 30 June 2026 1.

For fiscal 2027 the company expects sales of $13.60 billion to $13.75 billion, same-restaurant sales growth of 2.5 percent to 3.5 percent and 75 to 80 new restaurants 1.

It expects a tax rate of about 13.5 percent and capital spending of about $875 million 1. Fiscal 2027 has 52 weeks and ends on 30 May 2027 1.

On 24 September 2026 it reaffirmed earnings per share of $11.10 to $11.35 for the year 2. The board declared a quarterly dividend of $1.62 per share, payable on 2 November 2026 2.

Darden said in February 2026 that it expects to convert the remaining Bahama Breeze restaurants over the next 12 to 18 months 3. About $1.3 billion remained under a $1.5 billion share repurchase authorization 2.

Debt falls due in steps: $500.0 million of 3.850 percent notes in May 2027 and $400.0 million of 4.350 percent notes in October 2027 1.