Darden Restaurants Reports Strong Financial Performance in Q2 and First Half of Fiscal 2026

Darden Restaurants, Inc. reported a significant increase in financial performance for the second quarter and first half of fiscal 2026, with total sales reaching $3.10 billion and $6.15 billion, respectively, marking increases of 7.3% and 8.9% compared to the same periods in the previous fiscal year. The company's net earnings from continuing operations also rose, totaling $237.4 million for the second quarter and $495.3 million for the first six months, up from $215.7 million and $423.3 million in the prior year. Diluted net earnings per share from continuing operations increased to $2.03 and $4.23 for the respective periods, reflecting growth of 11.5% and 18.5%.

The financial results were bolstered by the acquisition of 103 Chuy’s locations and the opening of 30 new restaurants, alongside a blended same-restaurant sales increase of 4.3% for the quarter and 4.5% for the first half. Notably, Olive Garden and LongHorn Steakhouse contributed to this growth, with Olive Garden's sales increasing by 5.4% and LongHorn Steakhouse's by 9.3% in the second quarter. The overall increase in sales was partially offset by the sale of eight Olive Garden locations in Canada, which was finalized in July 2025.

Operationally, Darden's total restaurant count reached 2,182 as of November 23, 2025, an increase from 2,159 at the end of the previous fiscal year. The company is exploring strategic alternatives for the Bahama Breeze brand, which includes 28 locations, and has indicated plans for further geographic expansion. The company’s employee headcount and customer engagement metrics have also shown positive trends, with a reported increase in same-restaurant guest counts contributing to the sales growth.

Looking ahead, Darden anticipates sales growth for fiscal 2026 to be between 8.5% and 9.3%, driven by a projected same-restaurant sales growth of 3.5% to 4.3% and the addition of new restaurant openings. The company plans to invest between $750 million and $775 million in capital expenditures for new restaurant construction, remodels, and technology initiatives. Darden's management remains optimistic about the integration of Chuy’s and the overall performance of its restaurant brands, despite ongoing challenges in the market, including inflationary pressures and labor costs.