Darden Restaurants closed fiscal 2026 with another quarter of industry outperformance, and its biggest growth engines—Olive Garden and LongHorn Steakhouse—show little sign of slowing down.
The restaurant group reported fourth-quarter revenue of $3.72 billion, up 13.7 percent, while adjusted diluted earnings per share climbed 22.8 percent to $3.66. For the full fiscal year, total sales surpassed $13.2 billion for the first time in company history, up 9.4 percent, with adjusted EPS increasing 11.4 percent to $10.64.
The company reported fourth-quarter same-restaurant sales growth of 4.6 percent, driven by positive traffic across the portfolio and a year that CEO Rick Cardenas said demonstrated the strength of Darden’s operating model and brand positioning.
“Our restaurant teams continued to execute at a high level and their commitment to operational excellence helped each of our brands deliver positive same-restaurant sales for the quarter,” Cardenas said during Thursday’s earnings call. “We know guests choose the brands they trust for key occasions.”
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That trust translated into record-setting results. Cardenas said Mother’s Day marked the highest traffic day ever for Olive Garden and LongHorn Steakhouse, while guest satisfaction scores remained at or near all-time highs across the company.
LongHorn, meanwhile, continues to be Darden’s standout performer.
The steakhouse chain delivered 9.5 percent same-restaurant sales growth during the fourth quarter, outperforming the industry benchmark by more than 800 basis points. Over the past three years, LongHorn has produced more than 20 percent cumulative same-restaurant sales growth, lifting average unit volumes to approximately $5.6 million. Segment profit margin increased 110 basis points to 21.2 percent.
LongHorn’s momentum translated into $1.02 billion in fourth-quarter sales, a 22 percent increase from the prior year, while segment profit rose to $215 million. For fiscal 2026, annual sales reached $3.42 billion and segment profit climbed to $635 million.
“We’ve made investments in food quality probably for the last 10 years, and those investments continue to pay off,” Cardenas said. “The guests know they’re getting high-quality steak when they come to LongHorn.”
He also pointed to record steak cook-correct scores, improving service metrics, and the chain’s value proposition during a period of elevated beef prices. Consumers purchasing steaks at grocery stores continue to face inflation, making LongHorn’s menu look attractive by comparison.
A social media campaign surrounding the return of LongHorn’s seasonal lamb offering also exceeded expectations. A teaser post created significant online engagement before the chain sold through its expanded lamb inventory in roughly half the time required last year.
Management acknowledged there may be modest trade-down from fine dining into LongHorn, though Cardenas believes the larger opportunity is capturing consumers who otherwise would prepare steak meals at home.
Olive Garden finished the fiscal year with 4 percent same-restaurant sales growth, exceeding the high end of its long-term target range. LongHorn was even stronger, posting more than 7 percent same-restaurant sales growth for the year before capping it off with its annual Steak Master Series competition.
The chain earned $1.54 billion in quarterly sales, up from $1.38 billion a year ago, while segment profit climbed to $373 million from $328 million. For the full fiscal year, the brand produced $5.59 billion in sales and $1.26 billion in segment profit.
For the fourth quarter, Olive Garden saw 2.4 percent same-restaurant sales growth, supported by positive traffic that outpaced the industry by roughly 200 basis points. Restaurant-level margins expanded 50 basis points to 24.3 percent despite investments in the brand’s new Lighter Portions menu, which created an 80-basis-point headwind to average check as more guests opted for lower-priced entrees.
Executives made clear that the new menu is accomplishing exactly what they intended.
The Lighter Portions lineup is currently attracting low- to mid-single-digit guest preference, with much of the demand occurring during weekend lunch periods—a daypart the brand had deemphasized after eliminating its dedicated lunch menu years ago. Those guests are returning more frequently than before, providing management confidence that the platform can drive long-term traffic without sacrificing the brand’s value perception.
In addition to portioned sizes, Olive Garden is leaning further into protein-focused offerings, including its Calabrian Steak & Shrimp Bucatini and Hot Honey Chicken appetizer. Management stressed the brand isn’t attempting to transform into a steakhouse, but rather evolve alongside shifting consumer preferences.
“Olive Garden is going to be, we believe, a viable brand for a very long time. And in order to do that, we have to continue to make investments. We have to continue to evolve with what the consumer is looking for, and they’re looking for a little bit more protein right now,” Cardenas said. “Who knows how long that will be, but they’re looking for a little bit of protein right now. And we can find ways to give them that at Olive Garden and at all of our other brands.”
Operational improvements remain another major priority. Cardenas said Olive Garden has made meaningful gains in service speed during the past quarter, leading to significant improvements in pace-of-meal and service satisfaction scores, though executives believe additional opportunity remains.
The brand also continues to generate steady off-premises business. First-party delivery through Uber Direct represented roughly 4.7 percent of sales during the quarter, holding consistent with recent periods, while total off-premises sales accounted for approximately 27 percent of Olive Garden’s business. Darden continues to resist third-party marketplace delivery, saying concerns around pricing transparency, customer data ownership, and employee tipping remain unresolved.
For the fine dining segment (The Capital Grille, Eddie V’s, and Ruth’s Chris Steakhouse), same-store sales rose 1.2 percent in fiscal 2026 and 1.9 percent in Q4. For the other business segment, (Yard House, Seasons 52, Chuy’s, and Cheddar’s Scratch Kitchen) comps rose 3.9 percent in fiscal 2026 and 4.6 percent in Q4.
Darden expects fiscal 2027 revenue between $13.6 billion and $13.75 billion, same-store sales growth of 2.5 percent to 3.5 percent, and 75 to 80 new restaurant openings. The company also raised its quarterly dividend by 8 percent to $1.62 per share and authorized a new $1.5 billion share repurchase program.
