Darden Restaurants is a large U.S. full-service restaurant operator with more than 2,200 company-owned restaurants across multiple brands. In FY2026, revenue rose to $13,211 million and net income to $1,207 million according to the reported financial statements. The latest reported quarter, fiscal Q1 2027 ended August 30, 2026, showed continued sales growth but lower earnings year over year.
Scale and brand portfolio remain substantial
Darden describes itself as a full-service restaurant company. As of May 31, 2026, it owned and operated 2,202 restaurants in the United States under Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris, Cheddar’s Scratch Kitchen, The Capital Grille, Chuy’s, Seasons 52, Eddie V’s, Bahama Breeze, and The Capital Burger 1. It also had 167 restaurants operated by independent third parties under franchise and development agreements, four restaurants under contractual agreements, and one jointly owned restaurant 1.
By August 30, 2026, the number of company-owned restaurants had increased to 2,218 2.
FY2026 revenue and earnings increased
According to the reported financial statements, revenue increased to $13,211 million in FY2026 from $12,077 million in FY2025. Operating profit increased to $1,583 million from $1,362 million, and net income increased to $1,207 million from $1,050 million.
FY2026 | FY2025 | Change | |
|---|---|---|---|
Revenue | 13,211 | 12,077 | 9.4% |
Operating profit (EBIT) | 1,583 | 1,362 | 16.2% |
Net income | 1,207 | 1,050 | 15.0% |
Total assets | 12,862 | 12,587 | 2.2% |
Total equity | 2,208 | 2,311 | -4.5% |
Darden also stated that it added 43 net new restaurants in the United States during fiscal 2026 12. That indicates FY2026 growth came from both network expansion and higher consolidated earnings.
Fiscal Q1 2027 brought higher sales but lower earnings
For fiscal Q1 2027 ended August 30, 2026, Darden reported revenue of $3,200 million versus $3,045 million in fiscal Q1 2026. The company stated: "Total sales increased 5.1 percent to $3.20 billion"3. Net earnings from continuing operations were $234.3 million versus $257.9 million a year earlier, and diluted EPS from continuing operations was $2.05 versus $2.19 3.
Fiscal Q1 2027 | Fiscal Q1 2026 | Change | |
|---|---|---|---|
Revenue | 3,200 | 3,045 | 5.1% |
Net income | 233.4 | 257.8 | -9.5% |
Quarter ended August 30, 2026 versus quarter ended August 24, 2025.
Management said the increase was "driven by 53 net new restaurants and a blended same-restaurant sales increase of 3.1 percent"3. The quarter therefore combined continued top-line expansion with lower year-over-year earnings.
Bahama Breeze is being reduced and converted
A major portfolio action concerns Bahama Breeze. Darden said it had explored strategic alternatives for the brand, including a potential sale and conversion of locations to other concepts 4. It later completed that review and decided to permanently close about half of the Bahama Breeze restaurants and convert the remainder over the following 12 to 18 months 3.
The filing states: "we have completed two conversions of Bahama Breeze restaurants to other brands"3. This is reflected in the restaurant count, which fell to 10 at August 30, 2026 from 28 at August 24, 2025 2 2.
Balance sheet shows a shift toward higher short-term debt
According to the reported financial statements, Darden had total assets of $12,862 million and total equity of $2,208 million at FY2026. In fiscal Q1 2027 ended August 30, 2026, cash and cash equivalents were $220.5 million, current assets were $953.1 million, current liabilities were $3,199 million, and total liabilities were $11,158 million.
The debt mix changed between fiscal Q3 2026 and fiscal Q1 2027.
Fiscal Q1 2027 | Fiscal Q3 2026 | Change | |
|---|---|---|---|
Cash and cash equivalents | 220.5 | 240.4 | -8.3% |
Current assets | 953.1 | 1,009 | -5.5% |
Current liabilities | 3,199 | 2,608 | 22.7% |
Short-term debt | 979.7 | 290 | 237.8% |
Long-term debt | 1,636 | 2,141 | -23.6% |
Total liabilities | 11,158 | 10,785 | 3.5% |
Comparison is between quarter ended August 30, 2026 and quarter ended February 22, 2026.
The main balance-sheet movement was the increase in short-term debt alongside a reduction in long-term debt over that interval.
Fiscal 2027 outlook points to further sales growth
For fiscal 2027, Darden expects sales from continuing operations of $13.60 billion to $13.75 billion 3. It also expects same-restaurant sales growth of 2.5 percent to 3.5 percent and 75 to 80 new restaurant openings in fiscal 2027 3.
Overall, the reported figures show a business that expanded revenue and earnings in FY2026, continued to grow sales in fiscal Q1 2027, and is actively reshaping its portfolio through the reduction and conversion of Bahama Breeze locations.
Sources
Darden Restaurants, Inc · Item 1 - Business · 2026
Darden Restaurants, Inc · Part I Item 2 - MD&A · 2026
Darden Restaurants, Inc · Part I Item 2 - MD&A · 2025