Darden Restaurants Inc

Company facts

Industry

Retail-Eating Places

Headquarters

Orlando, Florida

Most recent report

10-K, filed Jul 24, 2026

Incorporated

Florida

Filings on record

1,000+ filings

On EDGAR

CIK 940944

Fiscal year ends

May

Filer status

Large accelerated filer

What to read: FY2026 10-K

SECSift found 3 of 26 sections worth reading, with 6 positive, 18 notable, and 0 negative flags.

• Business (Item 1)

  Bahama Breeze closures, Olive Garden Canada sale, and 53-week year with $13.2B sales all company-specific.
  Notable

  • Sold 8 Olive Garden Canada restaurants to Recipe in July 2025; now franchised, recurring royalties.
  • Bahama Breeze stores halved from 28 to 13; 15 closed by April 2026, remaining to convert over 12-18 months.
  • FY2026 was a 53-week year vs 52 weeks in FY2025, inflating comparable sales growth.
  • Every new General Manager or Managing Partner in FY2026 came from internal promotion, up from 99%.

• Management's Discussion (Item 7)

  Full-year results, segment margins, liquidity detail, guidance, and strategic moves.
  Positive

  • Total sales up 9.4% to $13.21B in FY2026, including 4.5% same-restaurant sales growth.
  • Diluted EPS from continuing ops rose 17.6% to $10.44, vs $8.88 in FY2025.
  • Net earnings from continuing ops up 15.5% to $1.21B, from $1.05B in FY2025.
  • FY2027 guidance: sales $13.60-13.75B, SRS 2.5-3.5%, 75-80 new openings. Capex ~$875M.
  • Leverage ratio of 2.0x is well below 3.50x covenant. Investment-grade ratings maintained.
  • Operating cash flow from continuing ops $1.85B in FY2026, up from $1.71B in FY2025.
  Notable

  • Gain on sale of Olive Garden Canada to Recipe partially offset Bahama Breeze closure costs.
  • Bahama Breeze: 13 restaurants remain; half closed, conversions expected over 12-18 months.
  • Chuy's integration complete; goodwill $267.2M. Incurred $9.5M integration costs in FY2026.
  • Net loss from discontinued ops widened to $7.0M in FY2026 from $1.4M, due to Canada sale.
  • Capital expenditures $734M in FY2026 vs $644.6M; FY2027 guided to ~$875M, heavy on new builds.
  • Food and beverage cost % of sales rose to 30.6% from 30.3%, hurt by 1.2% inflation.
  • Effective tax rate rose to 12.6% in FY2026 from 11.5%, driven by higher earnings before tax.
  • OBBBA tax law enacted July 4, 2025; restored 100% bonus depreciation and R&D expensing incorporated.
  • No goodwill or trademark impairment; performed quantitative annual test as of Feb 23, 2026.
  • $194M commercial paper outstanding; $1.06B available under $1.25B revolver as of May 31, 2026.
  • $500M 3.850% senior notes due May 2027 classified as current; refinancing needed.
  • Share repurchases jumped to $671.7M in FY2026 from $418.2M; dividends declared $6.00 vs $5.60.

• Financial Statements (Item 8)

  Full financials and notes with all company-specific numbers and risks.
  Notable

  • New debt covenant requires max leverage ratio of 3.50x, temporarily 4.00x after acquisitions.
  • Post-period Board authorized $1.5B share repurchase program, up from $1.0B prior.

What changed: FY2026 vs. FY2025

About 10% of DRI's FY2026 10-K is new information. 69 paragraphs were added, 340 changed, and 108 removed. Below are the most important lines SECSift identified.

• Financial Statements (Item 8) 106
• Business (Item 1) 94
• Management's Discussion (Item 7) 73
• Risk Factors (Item 1A) 39
• Exhibits (Item 15) 11
• Cybersecurity (Item 1C) 8
• Market for the Stock (Item 5) 5
• Properties (Item 2) 2
• Executive Compensation (Item 11) 1