Darden Restaurants' profit decreased in Q4 2025 despite sales growth, dividend increase announced.

From Yahoo Finance: 2025-06-23 07:56:00

Darden Restaurants saw a drop in profit for Q4 2025 despite total sales rising 10.6% to $3.27bn, driven by same-restaurant sales increase and acquisitions. Net income was $303.8m, operating income down 3.2%, and adjusted diluted net earnings per share up 12.5%. The board announced a dividend increase to $1.50 per share.

Looking ahead to fiscal 2026, Darden projects total sales growth of 7% to 8%, same-restaurant sales growth of 2% to 3.5%, 60 to 65 new restaurant openings, and total capital spending of $700m to $750m. The company expects an effective tax rate of 13% and diluted net earnings per share of $10.50 to $10.70.

CEO Rick Cardenas expressed satisfaction with Q4 results, exceeding expectations. Darden’s strategy remains focused on driving growth and long-term shareholder value. The Bahama Breeze chain may be sold or rebranded following the closure of 15 locations, with 28 remaining primarily in Florida. Eugene Lee Jr, former Darden CEO, joined Portillo’s board of directors.

Read more: Darden Restaurants’ profit slips in Q4 2025 despite sales growth