Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q4 2025 Earnings Presentation
37 slides from Darden Restaurants's earnings presentation, Jun 20, 2025
Slide 1: Earnings Call: Fiscal 2025 Fourth Quarter Results
Earnings Call Fiscal 2025: Fourth Quarter Results June 20, 2025
Slide 2: Disclaimer/Non-GAAP Information
Disclaimer/Non-GAAP Information IMPORTANT NOTICE The following slides are part of a presentation by Darden Restaurants, Inc. (the "Company") and are intended to be viewed as part of that presentation (the "Presentation"). No representation is made that the Presentation is a complete description of t
Slide 3: Brilliant with the Basics
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Slide 4: Darden brand portfolio
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Slide 5: Uber Direct Delivery
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Slide 6: LongHorn AYCE Steak Master Series
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Slide 7: Uber Direct Delivery
Uber Direct Delivery GET DELIVERED NOW DELIVERED Order delivery on VIEW MENU
Slide 8: Darden Restaurants
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Slide 9: Brilliant with the Basics
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Slide 10: Brilliant with the Basics
Be financially successful through great people consistently delivering outstanding food, drinks and service in an inviting atmosphere making every guest loyal. Brilliant with the Basics Culinary Innovation Attentive Engaging Enabled by Our & Execution Service Atmosphere People Extensive Data & Rigor
Slide 11: Fiscal 2025 Fourth Quarter Financial Highlights
Fiscal 2025 Fourth Quarter Financial Highlights $3.3 Billion 10.6% 4.6% SAME-RESTAURANT SALES TOTAL SALES TOTAL SALES GROWTH GROWTH1 $582 Million $2.98 $215 Million ADJUSTED DILUTED NET EPS ADJUSTED EBITDA2 FROM CONTINUING CASH RETURN3 OPERATIONS2 1 Will not include Chuy's until they have been owned
Slide 12: Margin Analysis vs. Prior Year
Margin Analysis vs. Prior Year As Reported As Adjusted1 Q4 2025 Q4 2025 Q4 2025 vs Q4 2024 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $3,271.7 $3,271.7 Food and Beverage $983.9 $983.9 30.1 % 60 Restaurant Labor $1,022.0 $1,022.0 31.2 % 10 Restaurant Expenses $517.1 $517
Slide 13: Fourth Quarter Segment Performance
Fourth Quarter Segment Performance1 Fiscal 2025 vs. Prior Year Segment Sales ($ millions) Fine Dining Other Segment Profit Margin2 Fine Dining Other 1 From the date of acquisition forward, sales and profits from Chuy's company-owned restaurants are included within the Other segment. 2 Segment profit
Slide 14: Fiscal 2025 Financial Highlights
Fiscal 2025 Financial Highlights $12.1 Billion 6.0% 2.0% SAME-RESTAURANT SALES TOTAL SALES TOTAL SALES GROWTH GROWTH1, 2 $2.0 Billion $9.55 $1.1Billion ADJUSTED DILUTED NET EPS Adjusted EBITDA3 FROM CONTINUING CASH RETURN4 OPERATIONS3 1 Will not include Chuy's until they have been owned and operated
Slide 15: Margin Analysis vs. Prior Year
Margin Analysis vs. Prior Year As Reported As Adjusted1 Fiscal 2025 Fiscal 2025 Fiscal 2025 vs Fiscal 2024 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $12,076.7 $12,076.7 Food and Beverage $3,657.0 $3,657.0 30.3 % 70 Restaurant Labor $3,833.1 $3,833.1 31.7 % — Restaurant
Slide 16: Fiscal 2026 Annual Outlook
Fiscal 2026 Annual Outlook SALES DEVELOPMENT MARGIN Total Sales Growth1 New Restaurant Openings Total Inflation: 2.5% - 3.0% 7.0% to 8.0% 60 to 65 Commodities: approx. 2.5% Same-Restaurant Sales Capital Spending Effective Tax Rate Growth2 $700 to $750 million approximately 13.0% 2.0% to 3.5% Diluted
Slide 17: Update to the Long-Term Framework
Update to the Long-Term Framework Annual Target (Over Time) Current Updated New Restaurant Growth 2% - 3% 3% - 4% Same-Restaurant Sales 1% - 3% 1.5% - 3.5% EBIT Margin Expansion 10 - 30 bps n/a EAT Margin Expansion n/a 0 - 20 bps Business Performance (EAT Growth) 7% - 10% 6% - 10% Dividend Payout Ra
Slide 18: Achieved Updated Long-Term Framework TSR Over Past Six Years
Achieved Updated Long-Term Framework TSR Over Past Six Years Updated FY19 - FY25 Framework Annualized Return1 (Over Time) New Restaurant Growth2 3% - 4% 3.1% Same-Restaurant Sales3, 4 1.5% - 3.5% 2.9% EAT Margin Expansion 0 - 20 bps 13 bps Business Performance (EAT Growth) 6% - 10% 7.6% Dividend Pay
Slide 19: Strong Model Generates Durable Cash Flows
Strong Model Generates Durable Cash Flows Adjusted EBITDA1 from Continuing Operations ($ in millions) CapEx $452 $460 $255 $377 $565 $601 $645 Adjusted 2.6x 1.7x 4.1x 4.1x 2.8x 3.0x 3.1x EBITDA1 / CapEx Dividend $374 $325 $204 $565 $590 $628 $659 Adjusted 2.2x 3.1x 2.4x 1.8x 1.8x 1.9x 2.1x Debt / EB
Slide 20: Rigorous Strategic Planning
Rigorous Strategic Planning Ensures we... Allows us to... // Have the right portfolio of brands // Determine each brand’s strategic role in portfolio // Align strategies and coordinate operations to // Identify distinct advantages and cultivate maximize portfolio’s value differentiated positioning /
Slide 21: Se ea
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Slide 22: Canadian Market Repositioning
Canadian Market Repositioning Canadian Olive Garden locations transition to franchise ownership, with a new development agreement to open 30 additional restaurants over the next 10 years 22
Slide 23: International / Franchising
International / Franchising New development agreements with partners in India and Spain for 40 Olive Garden locations each; new agreement in Asia for six Capital Grille locations Region Locations Continental US 63 Latin America 36 Hawaii, Puerto Rico, Guam 22 Asia 22 Canada 6 Middle East 3 Caribbean
Slide 24: Organizational Changes
Organizational Changes Rick Cardenas President & CEO Darden Todd Burrowes John Wilkerson Laura Williamson John Martin Group President President President Group President Darden Olive Garden LongHorn Darden Steakhouse Rik Jenkins Thomas Hall Bryan Clements Mark Cooper President President President Pr
Slide 25: NYSE Opening Bell
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Slide 26: Thank You To Our Team Members
Thank You To Our Team Members 26
Slide 27: Question & Answer Session
J DARDEN RESTAURANTS Question & Answer Session
Slide 28: Additional Information
JE DARDEN RESTAURANTS Additional Information
Slide 29: Commodities Outlook – First Half
Commodities Outlook – First Half June - November FY2026 Spend by category Coverage Outlook Beef 25% 50% Mid single digit inflation Dairy / Oil1 14% 65% Low single digit deflation Produce 12% 75% FLAT Seafood 8% 85% Mid single digit inflation Chicken 8% 100% Low single digit inflation Wheat2 7% 80% L
Slide 30: Portfolio of Differentiated and Iconic Brands
Portfolio of Differentiated and Iconic Brands FY25 Total Average Annual Restaurants3 Sales1 Restaurant Sales2 $5.2 B $5.6 M 935 $3.0 B $5.2 M 591 $879 M $10.0 M 88 $746 M $4.1 M 181 $611 M $8.8 M 71 $441 M $5.4 M 82 $304 M $6.8 M 43 $292 M $4.4 M 108 $253 M $8.5 M 29 $229 M $6.2 M4 28 1 Twelve month
Slide 31: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Q4 2025 Q4 2024 Earnings Diluted Earnings Income Diluted Before Income Net Before Tax Net Income Tax Net Earnings Income Expense Net Earnings $ in millions, except EPS Tax Expense Earnings Per Share Tax (Benefit) Earnings Per Share Reported Earnings from
Slide 32: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Fiscal 2025 Fiscal 2024 Earnings Earnings Before Income Diluted Net Before Income Diluted Net Income Tax Net Earnings Income Tax Net Earnings $ in millions, except EPS Tax Expense Earnings Per Share Tax Expense Earnings Per Share Reported Earnings from C
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Fiscal 2026 EBITDA Outlook Reconciliation $ in billions Net Earnings $ 1.23 to $ 1.25 Income Tax Expense $ 0.18 $ 0.19 Earnings Before Income Taxes $ 1.41 to $ 1.44 Interest, Net $ 0.19 $ 0.19 Depreciation and Amortization $ 0.56 $ 0.56 EBITDA $ 2.16 to $ 2.19 33
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reported to Adjusted Earnings Reconciliations1 Fiscal 2019 Earnings Before Income Income Tax Net $ in millions, except EPS Tax Expense Earnings Diluted EPS Reported Earnings from Continuing Operations $ 782.3 $ 63.7 $ 718.6 $ 5.73 Adjustments: Asset Impairments2 $ 14.6 $ 3.6
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA Reconciliation1 $ in millions 5/26/2019 5/31/2020 5/30/2021 5/29/2022 5/28/2023 5/26/2024 5/25/2025 Sales $8,510.4 $7,806.9 $7,196.1 $9,630.0 $10,487.8 $11,390.0 $12,076.7 Net Earnings (Loss) from Continuing Operations $718.6 $(49.2) $632.4 $954.7 $983.5 $1,0
Slide 36: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1 See slide 14 for non-GAAP figure presented. 2 In April 2018, our Benefits Plans Committee approved the termination of our primary non-contributory defined benefit pension plan. In fiscal 2020, the benefit obligation to plan participants was settled, resulting in a pension
Slide 37: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Total Debt Reconciliation1 $ in millions 5/26/2019 5/31/2020 5/30/2021 5/29/2022 5/28/2023 5/26/2024 5/25/2025 Short-term debt — $270.0 — — — 86.8 — Capital lease obligation $84.0 — — — — — — Long-term debt, excluding unamortized discount and issuance costs $939.1 $