Shares of Darden Restaurants (DRI) reached new heights on Friday following the company's impressive fourth-quarter results, beating both earnings and revenue predictions, and announcing a stock buyback. This success can be attributed to higher same-store sales and an increase in the number of locations.
Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House, which all fall under the Darden banner, reported a Q4 adjusted earnings per share (EPS) of $2.98. This marked an 11% year-over-year revenue increase, totaling $3.27 billion, narrowly surpassing Visible Alpha's estimates. Same-store sales saw an overall increase of 4.6%, with Olive Garden and LongHorn Steakhouse leading the way with increases of 6.9% and 6.7% respectively, all surpassing initial expectations.
During this quarter, Darden expanded its portfolio by adding 25 new restaurants and 103 Chuy's Tex Mex locations, following the acquisition of the chain in July 2025. Olive Garden's revenues grew by over 8% to $1.38 billion, while LongHorn Steakhouse saw a 9% revenue increase to $833.8 million. Ruth's Chris, classified under "Fine Dining" chains, saw over a 2% growth to $334.6 million. After the addition of Chuy's to its roster, Darden's "Other Business" revenue saw a 22% boost to $722.3 million.
Alongside the Q4 financial report, Darden announced the board's authorization for a new share repurchase program, valued at up to $1.0 billion. The shares of Darden Restaurants surged 2% to around $227 during Friday's trading. Overall, the shares have seen over a 20% increase this year, touching a record $228.27 earlier in the session.