Darden Restaurants

What restaurants does Darden own?
Darden owns 11 restaurant brands: Olive Garden (936 locations), LongHorn Steakhouse (601), Cheddar's Scratch Kitchen (184), Chuy's (109), Yard House (91), Ruth's Chris Steak House (82), The Capital Grille (73), Seasons 52 (45), Eddie V's (30), Bahama Breeze (28), and The Capital Burger (3). Total: 2,182 restaurants as of November 23, 2025.

Is Darden Restaurants publicly traded?
Yes. Darden Restaurants, Inc. is publicly traded on the New York Stock Exchange under the ticker DRI. The company is a component of the S&P 500. There is no parent company or controlling shareholder.

Who owns Darden Restaurants?
Darden Restaurants is an independent publicly traded corporation with no parent company. The company is owned by institutional investors, mutual funds, and individual shareholders. Major institutional holders include Vanguard Group, BlackRock, and State Street Corporation. There is no dual-class share structure or founder control.

What were Darden's FY2026 financial results?
For FY2026 (fiscal year ended May 31, 2026), Darden reported total sales of $13.21 billion, up 9.4% year over year, with blended same-restaurant sales growth of 4.5%. Reported diluted EPS from continuing operations was $10.44, and adjusted diluted EPS was $10.64, up 11.4% from the prior year. The fiscal year included a 53rd week of operations, which contributed approximately 2.1% to sales growth and $0.25 to EPS.

Does Darden own Red Lobster?
No. Darden sold Red Lobster to Golden Gate Capital in 2014 for $2.1 billion. Red Lobster subsequently filed for Chapter 11 bankruptcy in May 2024. Darden has no ownership interest in Red Lobster.

When was Darden Restaurants founded?
Darden Restaurants was spun off from General Mills as an independent public company in 1995. Its origins trace to 1968 when Bill Darden opened the first Red Lobster in Lakeland, Florida. General Mills acquired Red Lobster in 1970 and developed Olive Garden in 1982 before spinning off the restaurant division as Darden Restaurants.

How many restaurants does Darden operate?
Darden operates 2,182 company-owned restaurants across 11 brands, primarily in the United States. All restaurants are company-owned rather than franchised.

What is Darden's FY2027 outlook?
Darden's FY2027 outlook projects total sales of $13.60 to $13.75 billion, same-restaurant sales growth of 2.5% to 3.5%, 75 to 80 new restaurant openings, total capital spending of approximately $875 million, and diluted EPS from continuing operations of $11.10 to $11.35.

Bill Darden founded the first Green Frog restaurant in Waycross, Georgia in 1938. He opened the first Red Lobster restaurant in Lakeland, Florida in 1968, which became the foundation for what would become Darden Restaurants. General Mills acquired Red Lobster in 1970 and later developed Olive Garden, opening the first location in 1982.

General Mills spun off its restaurant operations as Darden Restaurants Inc. in 1995, creating an independent publicly traded company. At the time of the spinoff, Darden operated Red Lobster and Olive Garden. The company subsequently expanded through acquisitions and internal development: Bahama Breeze (developed internally in the 1990s), Seasons 52 (developed internally, first location 2003), Yard House (acquired 2012 for approximately $585 million), Cheddar's Scratch Kitchen (acquired 2017 for approximately $780 million), and Ruth's Chris Steak House (acquired 2023 for approximately $715 million).

In 2014, Darden sold Red Lobster to private equity firm Golden Gate Capital for $2.1 billion. The decision was controversial, with activist investor Starboard Value pushing for the sale. Red Lobster subsequently struggled financially and filed for Chapter 11 bankruptcy in May 2024, which drew renewed attention to the 2014 sale decision.

In fiscal 2025, Darden acquired Chuy's, a Tex-Mex casual dining chain, for approximately $605 million. The acquisition added 109 restaurants to Darden's portfolio and expanded the company's presence in the Tex-Mex category. Chuy's results are included within the Other Business segment from the date of acquisition forward.

In FY2026, Darden sold its Olive Garden Canada restaurants, generating a gain that was excluded from adjusted earnings. The company also closed several underperforming locations, including a reduction of Bahama Breeze locations from 43 to 28.

For FY2026 (fiscal year ended May 31, 2026), Darden reported total sales of $13.21 billion, up 9.4% year over year. The growth was driven by a 53rd week of operations (contributing approximately 2.1% of sales growth), a blended same-restaurant sales increase of 4.5%, and sales from 43 net new restaurants. Reported diluted EPS from continuing operations was $10.44, and adjusted diluted EPS was $10.64, up 11.4% from the prior year. The extra week of operations contributed $0.25 to both reported and adjusted EPS.

In Q1 FY2026 (quarter ended August 24, 2025), Darden reported sales of $3.04 billion, up 10.4% year over year, with reported diluted EPS of $2.19 and adjusted diluted EPS of $1.97, up 12.6%.

In Q2 FY2026 (quarter ended November 23, 2025), Darden reported sales of $3.1 billion, up 7.3% year over year, with blended same-restaurant sales growth of 4.3%. Reported diluted EPS was $2.03, and adjusted diluted EPS was $2.08, up 2.5%.

In Q4 FY2026 (quarter ended May 31, 2026), Darden reported sales of $3.72 billion, up 13.7% year over year, with reported diluted EPS of $3.54 and adjusted diluted EPS of $3.66.

Following the FY2026 results, Darden authorized a new $1.5 billion share repurchase program and increased its quarterly dividend. The company provided FY2027 guidance of total sales between $13.60 billion and $13.75 billion, same-restaurant sales growth of 2.5% to 3.5%, 75 to 80 new restaurant openings, and diluted EPS from continuing operations of $11.10 to $11.35.

Darden Restaurants maintains sustainability and ethics practices focused on responsible food sourcing, environmental stewardship, and social responsibility across its restaurant operations.

Food sourcing: Darden has established Food Principles that prioritize quality, safety, and ethical practices across all supply chains. The company partners with suppliers who follow sustainable farming practices and supports local and regional food suppliers to reduce transportation impact. Supply chain transparency and traceability are components of the company's sourcing standards.

Animal welfare: Darden has comprehensive animal welfare standards for all animal products served in its restaurants. The company partners with suppliers who meet high animal welfare standards and has been recognized for leadership in animal welfare practices in the restaurant industry.

Environmental conservation: Darden has programs to conserve energy and water usage across restaurant facilities. The company operates comprehensive waste management programs and has committed to taking action on climate risks across restaurant operations and supply chain. Darden publishes an annual Impact Report detailing progress across sustainability initiatives.

Social responsibility: Darden supports employee wellbeing, training, and professional development programs. The company engages in community involvement in local markets where restaurants operate and contributes to local economies through employment and local sourcing.

Darden is not a Certified B Corporation and does not have published science-based targets for carbon emissions reduction. The company's sustainability efforts are focused on operational improvements rather than formal certifications.

Darden Restaurants has received recognition for its sustainability leadership, food quality, and workplace practices:

• ESG Recognition: Acknowledged for comprehensive ESG reporting and sustainability practices in the restaurant industry
• Animal Welfare: Industry recognition for animal welfare standards and farm animal care practices
• Food Safety: Recognition for leading industry practices in food safety and quality management
• Workplace: Recognition for employee training, professional development programs, and diversity and inclusion initiatives
• Fortune 500: Darden is included in the Fortune 500 ranking of largest U.S. companies

Darden has faced several areas of controversy and public scrutiny.

Red Lobster sale (2014): Darden sold Red Lobster to private equity firm Golden Gate Capital in 2014 for $2.1 billion. The decision was pushed by activist investor Starboard Value, which argued that Red Lobster was underperforming. Red Lobster subsequently struggled financially and filed for Chapter 11 bankruptcy in May 2024. Critics have argued that the sale undervalued Red Lobster and that the private equity ownership model contributed to its decline.

Activist investor pressure: In 2014, Starboard Value launched a proxy fight against Darden, replacing the entire board of directors. Starboard argued that Darden was mismanaging its restaurant portfolio and that operational improvements were needed. The activist campaign resulted in significant changes to Darden's strategy, including the Red Lobster sale and operational reforms. Starboard's involvement has been cited as a case study in shareholder activism.

Labor and tipping practices: Darden has faced scrutiny regarding tipping practices and wages for tipped workers. The restaurant industry broadly faces pressure over tip credits, minimum wage laws, and tipped employee compensation. Darden has adjusted its labor practices in response to regulatory changes in various states.

Commodity price pressure: Near-record beef prices have pressured restaurant-level margins, particularly at LongHorn Steakhouse and Ruth's Chris Steak House. While not a controversy per se, this has been a topic of investor scrutiny and has affected the company's profitability.

Bahama Breeze closures: Darden reduced Bahama Breeze locations from 43 to 28, indicating challenges with the Caribbean-themed concept. The company has not announced plans to close the brand entirely but has been pruning underperforming locations.