Darden Restaurants Inc (DRI) Q4 2025 Earnings Call Highlights: Strong Sales Growth and ...
Total Sales: $3.3 billion, a 10.6% increase from the prior year.
Same-Restaurant Sales Growth: 4.6% for the fourth quarter.
Adjusted Diluted Net Earnings Per Share: Increased 12.5% to $2.98.
Adjusted EBITDA: $582 million for the fourth quarter.
Dividends and Share Repurchases: $215 million returned to shareholders, including $164 million in dividends and $51 million in share repurchases.
Olive Garden Same-Restaurant Sales Growth: 6.9% for the quarter.
Olive Garden Segment Profit Margin: 23.8%, 100 basis points higher than last year.
LongHorn Steakhouse Same-Restaurant Sales Growth: 6.7% for the quarter.
LongHorn Steakhouse Segment Profit Margin: 20.1%, 80 basis points above last year.
Fine Dining Segment Sales Increase: 2.3% with six net new restaurants.
Other Business Segment Sales Increase: 22.4%, driven by the acquisition of Chuy's and positive same-restaurant sales at Yard House and Cheddar's.
Fiscal Year Total Sales: Surpassed $12 billion for the first time.
Fiscal Year Adjusted Diluted Net Earnings Per Share: Increased 7.5% to $9.55.
Fiscal Year Adjusted EBITDA: $2 billion from continuing operations.
Fiscal Year Same-Restaurant Sales Growth: 2%, outperforming the industry by 170 basis points.
New Restaurant Openings: 25 net new restaurants in the fourth quarter.
Permanent Closures: 22 underperforming restaurants closed in the fourth quarter.
Warning! GuruFocus has detected 9 Warning Sign with DRI.
Release Date: June 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Darden Restaurants Inc (NYSE:DRI) reported strong same-restaurant sales and earnings growth that exceeded expectations, driven by successful marketing strategies and operational execution.
Olive Garden's 'buy one take one' offer and nationwide delivery contributed to a 20% increase in takeout sales over the previous year.
LongHorn Steakhouse achieved an all-time high guest satisfaction score and segment profit margin, driven by a focus on quality and training.
Darden Restaurants Inc (NYSE:DRI) returned $215 million to shareholders through dividends and share repurchases, demonstrating strong cash flow management.
The company announced a 7% increase in its regular quarterly dividend, reflecting confidence in future cash flow and earnings growth.
Darden Restaurants Inc (NYSE:DRI) permanently closed 15 underperforming Bahama Breeze restaurants, indicating challenges in that brand's performance.
The Fine Dining segment experienced negative same-restaurant sales for the quarter, with segment profit margin lower than the previous year.
The acquisition of Chuy's resulted in increased interest expenses, impacting overall financial performance.
The company faces macroeconomic uncertainties, which could impact future same-restaurant sales growth.
Darden Restaurants Inc (NYSE:DRI) is considering strategic alternatives for the Bahama Breeze brand, including a potential sale, indicating potential instability in that segment.
Q: Congrats on the strong same-store sales results. Can you give us your perspective on why casual dining is performing well right now, and how smaller chains are faring in this environment? A: Ricardo Cardenas, President and CEO, explained that consumers are recognizing the value in casual dining, which is driving increased traffic. He noted that Darden has been prudent with pricing, keeping it below inflation, which has helped attract customers from fast food and fast casual segments.
Q: Regarding the unit growth outlook, when might we see a ramp in unit growth, and which brands will contribute the most? A: Rajesh Vennam, CFO, stated that Darden expects to be in the 3%-plus range for unit growth over the next five years. Olive Garden and LongHorn are expected to open 40 to 45 new locations, with Yard House and other brands contributing additional openings.
Q: Does the updated long-term framework reflect a different view on restaurant margin opportunities or reinvestment rates? A: Rajesh Vennam explained that the new framework emphasizes sales growth with appropriate investments, which may result in restaurant-level EBITDA not growing at previous rates. The focus is on long-term growth rather than immediate margin expansion.
Q: Can you discuss the impact of Uber Direct at Olive Garden on mix and same-store sales, and any differences in incremental margin? A: Rajesh Vennam noted that Uber Direct contributed about 3.5% of total sales at Olive Garden in Q4, with a mix impact of 40 basis points. The incremental sales impact was roughly 2%, and there was no significant negative impact on margins due to the structure of the deal with Uber.
Q: How are you prioritizing the rollout of Uber Direct across other brands, and what are the considerations? A: Ricardo Cardenas mentioned that the priority is to evaluate the performance of Uber Direct at Olive Garden and Cheddar's before expanding to other brands. Each brand's leadership will decide if they want to implement Uber Direct, ensuring it aligns with their operational capabilities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBS News
12 minutes ago
- CBS News
Consignment shop in Massachusetts gives children's clothes and toys a second life
A children's consignment shop in Holliston, Massachusetts is doing more than just selling nice clothing and toys, as they help others in need and give items a second life. "Secondhand doesn't have to mean that it looks secondhand, right, so that's the beauty of it," said Caitlin Shannon, owner of Fiddle and Find in Holliston. Shannon spent a decade as a nurse in pediatrics and labor and delivery. But a year ago, she left the career she loved to follow a different passion, taking a leap of faith and opening Fiddle and Find. Consignment shop for children's clothes and toys "I've dreamed of owning my own small business, sustainable business," said Shannon. "It's really important to be conscious of our clothing consumption and sustainability and remaining eco-friendly but it doesn't have to be what you initially think it is. Here we curate all the items, we want to sell like new clothing to people and also explain how it can be good for the environment and their wallet." If you want to sell a product, you make an appointment at the store. Shannon closely examines it and decides whether or not she wants to put it on her shelves. "Our biggest thing is just making sure there's no stains, no frays, no rips, no tears, the condition is like new and it's current," said Shannon. If your item sells, you receive a portion of the profit. If it doesn't, the product is donated to Project Just Because in Hopkinton, a nonprofit that provides basic necessities to families in need. "We're keeping clothes out of landfills" "That way, we're keeping clothes out of landfills, everything is getting upcycled," said Shannon. According to Smart Asset, Massachusetts is the most expensive state in the country to raise a child. For a lot of families, every dollar counts and shopping secondhand can help. "I think it's the future," said Shannon. "I think it's the smart way to go and you don't have to sacrifice anything." Fiddle and Find sells clothing from infant to young adult, along with bikes, books, toys and sports gear, including clothing for horseback riding and dance classes. Shannon said she's happy she took the chance on a new career that still connects her with kids and families every day. "It's been a whirlwind but also felt like this giant hug," said Shannon. "I think I am shocked about the outpouring of support from the community."
Forbes
28 minutes ago
- Forbes
5 ChatGPT Prompts To Build Your Personal Brand As An Entrepreneur
teen entrepreneur working on her building her personal brand using chatgpt In today's digital economy, your personal brand determines whether potential customers trust you enough to buy, investors take your calls, and mentors choose to guide your journey. ChatGPT offers a strategic solution, enabling entrepreneurs to establish authentic personal brands without adding another full-time responsibility to their already busy schedules. The five targeted ChatGPT prompts below help young entrepreneurs craft compelling content that builds authority, connects with audiences, and drives business results, without consuming every spare hour. 1. The ChatGPT Prompt For Creating A Professional Summary That Connects LinkedIn is a valuable platform for young entrepreneurs seeking partnerships, mentorship, and investment opportunities. This prompt creates summaries that move beyond business descriptions to showcase the person behind the company. "I'm creating a LinkedIn summary that showcases my entrepreneurial journey and connects with my target audience. Help me write a 200-word summary that: 1) Opens with my core mission and what drives me personally, 2) Explains my business's impact on customers or community, 3) Includes a brief story that demonstrates my commitment to this work, 4) Ends with what I'm building toward next. My audience includes potential customers, collaborators, and mentors who value authenticity and purpose-driven businesses." The most effective LinkedIn summaries connect personal motivation with business impact. Young entrepreneurs who share their journey—including what drives them beyond profit—tend to attract more meaningful connections and opportunities than those who only list accomplishments. 2. The ChatGPT Prompt For Sharing A Milestone Moment Milestone posts serve dual purposes: celebrating achievements while providing value to your audience. This approach transforms business updates into educational content that builds a community around your brand. "I'm celebrating a recent business milestone and want to share it in a way that inspires other young entrepreneurs. Create a social media post that: 1) Briefly describes the achievement and why it matters, 2) Shares one significant challenge we overcame to reach this point, 3) Connects this milestone to a lesson other entrepreneurs can apply, 4) Ends with encouragement for others facing similar challenges. Maintain a celebratory tone while being honest about the work required. My audience consists of aspiring entrepreneurs building their first businesses." The most effective milestone posts share both victories and setbacks. Young entrepreneurs who document their journey honestly—including the preparation, research, and problem-solving behind their success—create stronger audience connections than those who only share polished outcomes. 3. The ChatGPT Prompt For Creating A Universal Elevator Pitch Consistency across platforms builds recognition and trust. A well-crafted elevator pitch ensures your message remains clear whether someone encounters you on LinkedIn, Instagram, or in person. "I need a versatile elevator pitch for my email signature, social media bios, and networking conversations. Create a 75-word introduction that: 1) Immediately identifies the problem my business solves, 2) Briefly explains our unique approach or solution, 3) Mentions who we serve specifically, 4) Includes a clear next step for people who want to learn more. The tone should be confident but approachable, and it needs to work across professional and casual settings." This prompt helps create concise descriptions that work across contexts while maintaining your authentic voice. The key is balancing professionalism with personality—something particularly important for young entrepreneurs who need to establish credibility while remaining relatable. 4. The ChatGPT Prompt To Build A Strategic Content Calendar Consistent posting builds audience relationships, but generating fresh ideas constantly drains creative energy. This structured approach ensures variety while maintaining a focus on brand-building objectives. "Help me plan 30 days of content that builds my personal brand and supports my business goals. Create a content calendar with: 1) 10 LinkedIn post ideas that position me as knowledgeable in my industry, 2) 10 Instagram post concepts that show the personal side of entrepreneurship, 3) 5 educational posts that provide value to my audience, 4) 5 behind-the-scenes posts that humanize my brand. Mix content types including personal stories, industry insights, customer features, and practical tips. My audience values both inspiration and actionable advice." The most successful young entrepreneurs strike a balance between educational content and personal insights. Showing both expertise and vulnerability creates stronger connections with the audience than purely promotional content. 5. The ChatGPT Prompt To Create A Blog Post Blog content builds long-term authority and provides shareable resources that extend your reach. Educational posts consistently perform well across social platforms, helping to establish young entrepreneurs as credible voices in their industries. "I want to write a blog post that establishes my expertise while providing genuine value to my audience. Create a 600-word article on [specific topic relevant to your business] that: 1) Opens by explaining why this topic matters to my audience right now, 2) Provides three actionable strategies readers can implement immediately, 3) Includes specific examples or case studies that illustrate each point, 4) Concludes by reinforcing my expertise and inviting readers to connect or follow for more insights. Write in a confident but accessible tone that demonstrates knowledge without being intimidating." This approach works particularly well for teen entrepreneurs who need to overcome age-related credibility concerns. By consistently sharing valuable insights and demonstrating expertise, young business owners can establish trust with their audiences, regardless of age. Building Brand Authority Through Consistency These prompts address the core challenge facing young entrepreneurs: creating professional content while maintaining authenticity. Successful young entrepreneurs utilize consistent messaging across platforms to establish awareness for both their businesses and the causes they support. Content strategies that connect product sales with social impact create cohesive brand stories that resonate with customers who share similar values. Success comes from implementation, not just planning. Young entrepreneurs should start with one prompt, create content, and measure audience response before expanding their content strategy. The goal is sustainable growth, not overwhelming yourself with unrealistic posting schedules. Authentic Growth Over Perfect ChatGPT Content Building a personal brand as a young entrepreneur requires striking a balance between professionalism and authenticity. Your audience wants to support genuine people solving real problems, not polished corporate personas. Start with the ChatGPT prompt that addresses your most pressing challenge—whether that's creating compelling LinkedIn content, sharing business milestones that resonate, or establishing credibility in your industry. Remember that audiences connect with entrepreneurs who share their real journey, not polished perfection. Consistent application of these strategies builds recognition and trust over time, creating a personal brand that opens doors and drives business growth.
Fox News
36 minutes ago
- Fox News
Israel launches new wave of missiles toward Israel
All times eastern THE CLAMAN COUNTDOWN: POWER PLAYERS Maria Bartiromo's Wall Street FOX News Radio Live Channel Coverage
