Darden Restaurants

Darden lets people eat out at various sit-down restaurant brands across North America. It manages many different dining styles from casual steakhouse meals to high-end seafood dinners. Most of its business comes from owning and running these restaurants directly.

What Is on the Menu?

• Olive Garden: Italian-style dining offering pasta and salads; accounted for $1.39 billion or roughly 42% of sales in Q3 2026.
• LongHorn Steakhouse: Casual dining focusing on grilled meats and classic American sides; generated $854 million in sales during Q3 2026.
• Fine Dining: Premium brands including Ruth's Chris Steak House, The Capital Grille, and Eddie V's; earned $402 million in Q3 2026.
• Other Business: Diverse concepts like Yard House and Cheddar's Scratch Kitchen plus international franchise royalties; contributed $696 million in sales for Q3 2026.

A Portfolio in Transition

• Acquired 100 percent of Chuy's Holdings, Inc. on October 11, 2024, for $613.7 million in net cash to expand into Tex-Mex dining.
• Sold eight Olive Garden locations in Canada to Recipe Unlimited Corporation on July 14, 2025, shifting those sites to a franchise model.
• Announced the closure of 14 Bahama Breeze restaurants on February 3, 2026, after completing a strategic review of the brand.
• Planned the conversion of 14 remaining Bahama Breeze locations to other company-owned brands over a 12 to 18-month period.

Operational Strengths

Darden uses a centralized support system to manage supply chains and marketing for over 2,100 restaurants. This scale helps the company negotiate lower costs for food and beverages across its different brands.

The Latest Financial Facts

• Sales reached $3.35 billion in Q3 2026, up 5.9% from $3.16 billion in Q3 2025.
• Free cash flow hit $623.3 million in Q3 2026, up 49.4% from $417.1 million in Q3 2025.
• Operating income was $440.3 million in Q3 2026, a 5.3% increase from $418.2 million in Q3 2025.
• Net income for Q3 2026 was $306.8 million, down 5.1% from $323.4 million in the previous year.
• Nine-month sales for the period ending February 22, 2026, grew 7.8% year-over-year to $9.49 billion.

Bottom Line

Darden has grown through strategic acquisitions like Chuy's while refining its portfolio by selling or closing underperforming units. The company continues to shift its mix toward brands that offer high-volume casual and fine dining experiences.