Supplemental Materials
Fiscal 2027: First Quarter Results September 24, 2026
Full-service restaurant company with a winning strategy
Clear roadmap to grow our portfolio of iconic brands
Strong commitment to disciplined capital stewardship
Category Outperformance │ History of Industry leading margins and traffic
Strong, Consistent Return │ Long track record of delivering 10-15% Total Shareholder Return1
Unique Platform Advantages │ Supply chain and technology stack enable the portfolio of brands to deliver stronger performance than they could independently
Broad Portfolio │ Spanning numerous segments and demographics to capture greater share of dining occasions
Differentiated Brands │ Clear, unique value propositions give each brand a competitive edge and strategic focus
Two Dominant Brands │ Focused on durable traffic growth and increasing unit growth at Olive Garden and LongHorn Steakhouse
High-Potential Growth Brands │ Ability to grow units faster at Yard House, Cheddar's & Chuy's2
Balanced Brands │ Capitalizing on growth opportunities as category leaders
Durable Free Cash Flow │ Thoughtfully deploying excess cash flow
Strategic Capital Allocation │ 4-5% cash returns to shareholders, balanced across dividends (targeted payout ratio of 50- 60%) & opportunistic share repurchases3
Strong Balance Sheet │ Committed to a healthy investment grade, with a long-term leverage target of 2-2.5x adjusted Debt/EBITDAR4
Rigorous Portfolio Management │ Allocating dollars, talent & time based on clear portfolio roles
Performance-Driven Leadership: Best-in-Class Operations • Deeply Experienced Management Team • Incentives Aligned with Shareholders
1 Based on the Company's performance over its 31-year history as a public company for any 10 fiscal year period when considering Darden's stock appreciation plus dividend yield.
2 As compared to the Company's Long-Term Framework for New Restaurant growth.
3 As set forth in the Company's Long-Term Framework.
4 Adjusted Debt = funded debt + 6x minimum annual leases + guarantees; Adjusted EBITDAR = EBITDA + minimum annual lease addback.
Certain statements made on this page contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Legal Reform Act of 1995.
For more information, please refer to the "Disclaimer" page at the beginning of this presentation or the Safe Harbor Notice posted to the Governance page of the Investors section of our website at darden.com.
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Be financially successful through great people consistently delivering outstanding food, drinks and service in an inviting atmosphere making every guest loyal.
Culinary Innovation & Execution
Attentive Service
Engaging Atmosphere
Enabled by Our People
Data & Insights
Significant Scale Extensive
Rigorous Strategic Planning
Quality of Our Employees
"The greatest edge we have on our competitors is the quality of our employees reflected each day in the job they do."
- Bill Darden 4
New Restaurant Growth Same-Restaurant Sales EAT Margin Expansion | Annual Target (Over Time) |
3% - 4% 1.5% - 3.5% 0 - 20 bps | |
Business Performance (EAT Growth) | 6% - 10% |
Dividend Payout Ratio Share Repurchase | 50% - 60% 1% - 2.5% |
Return of Cash | 4% - 5% |
Total Shareholder Return (EPS Growth + Dividend Yield) | 10% - 15% |
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Ten-Year Average Annual Total Shareholder Return
Never Below 10% for Any 10-Fiscal Year Period as a Public Company
24%
17% 17%
14%
11%
14%
12%
10%
14%
11%
11% 12%
10%
16%
18%
11%
16%
14%
17% 16% 17%
15%
1995- | 1996- | 1997- | 1998- | 1999- | 2000- | 2001- | 2002- | 2003- | 2004- | 2005- | 2006- | 2007- | 2008- | 2009- | 2010- | 2011- | 2012- | 2013- | 2014- | 2015- | 2016- |
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
Calculated as Darden's stock appreciation plus dividend yield. Each 10-fiscal year period ending May.
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Financial Results
Fiscal 2027 First Quarter Financial Highlights
$3.2 Billion
TOTAL SALES
5.1%
TOTAL SALES GROWTH
3.2%
COMPARABLE CALENDAR SAME-RESTAURANT SALES GROWTH1
$406 Million
CASH RETURN3
$464 Million
EBITDA2
$2.05
DILUTED NET EPS FROM CONTINUING OPERATIONS
1 Quarter same-restaurant sales is a 13-week metric based on the comparable calendar and excludes the impact of Bahama Breeze as all locations are expected to be closed or converted to other brands by Q4 fiscal 2027. See slide 16 for calculation dates.
2 A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation.
3 Includes cash dividends paid and repurchases of common stock, inclusive of 1% excise tax incurred on net repurchases, resulting from the Inflation Reduction Act of 2022.
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Margin Analysis vs. Prior Year Q1 2027
Sales | ($ millions) $3,200.3 | % of Sale | s | vs PY1 (bps) Favorable/(Unfavorable) |
Food and Beverage | $984.9 | 30.8 | % | (30) |
Restaurant Labor | $1,028.9 | 32.2 | % | 30 |
Restaurant Expenses | $530.5 | 16.6 | % | - |
Marketing Expenses | $53.1 | 1.7 | % | - |
Restaurant-Level EBITDA | $602.9 | 18.8 | % | 0 |
Pre-opening Costs | $8.5 | 0.3 | % | (10) |
General and Administrative Expenses | $134.8 | 4.2 | % | - |
Depreciation and Amortization | $144.2 | 4.5 | % | (10) |
Impairment and Disposal of Assets, Net | $(3.9) | (0.1)% | 10 | |
Operating Income | $319.3 | 10.0 % | 0 | |
Interest Expense | $50.3 | 1.6 % | (10) | |
Earnings Before Income Tax | $269.0 | 8.4 % | (10) | |
Income Tax Expense | $34.7 | 1.1 % | (20) | |
Note: Effective Tax Rate | 12.9% | |||
Earnings From Continuing Operations | $234.3 | 7.3 % | (30) | |
Note: Continuing operations, values may not foot due to rounding.
1 Compared to first quarter fiscal 2026 adjusted performance. A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation.
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First Quarter Segment Performance
Segment Sales ($ millions)
Fine Dining Other Business
$776
$861
10.9%
2.2%
$1,301
$1,330$287
$304
6.2%
3.6%
$681
705FY26 Q1 FY27 Q1
FY26 Q1 FY27 Q1
FY26 Q1 FY27 Q1
FY26 Q1 FY27 Q1
Segment Profit Margin1
Fine Dining Other Business
20.6% 20.4%
FY26 Q1 FY27 Q1
17.4% 18.0%
FY26 Q1 FY27 Q1
13.5% 13.0%
FY26 Q1 FY27 Q1
16.1% 15.8%
FY26 Q1 FY27 Q1
1 Segment profit margin calculated as (sales less costs of food & beverage, restaurant labor, restaurant expenses and marketing expenses) / sales.
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Reaffirm Fiscal 2027 Annual Outlook
Total Sales
$13.6 billion to $13.75 billion
Same-Restaurant Sales Growth1
2.5% to 3.5%
SALES
Restaurant Openings
75 to 80
Capital Spending
approximately $875 million
DEVELOPMENT
Total Inflation
approximately 3.0%
Commodities: approx. 3.0%
EBITDA2
$2.26 billion to $2.29 billion
Effective Tax Rate
approximately 13.5%
MARGIN
Diluted Net Earnings per Share
$11.10 to $11.35
(Approximately 114 million Weighted Average Diluted Shares Outstanding)
1 Annual same-restaurant sales is a 52-week metric based on the fiscal calendar and excludes the impact of Bahama Breeze as all locations are expected to be closed or converted to other brands by Q4 fiscal 2027.
2 A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation.
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Commodities Outlook - Second and Third Quarter
Spend by category | September - February FY2027 Coverage Outlook | ||
Beef | 29% | 65% | Low single digit inflation |
Dairy / Oil1 | 12% | 65% | Low single digit inflation |
Produce | 12% | 80% | Low single digit inflation |
Seafood | 8% | 85% | Mid single digit inflation |
Chicken | 8% | 100% | Flat |
Wheat2 | 6% | 75% | Low single digit inflation |
Non-Perishable / Other | 25% | 45% | Low single digit inflation |
Weighted average coverage | 100% | 65% | |
1 Includes cheese, cream, butter, and shortening.
2 Includes breadsticks and pasta.
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Non-GAAP Information
Q1 Reported to Adjusted Earnings Reconciliations
Q1 2027 Q1 2026
$ in millions, except EPS | Earnings Before Income Tax | Income Tax Expense | Net Earnings | Diluted Net Earnings Per Share | Earnings Before Income Tax | Income Tax Expense | Net Earnings | Diluted Net Earnings Per Share |
Reported Earnings from Continuing Operations | $ 269.0 | $ 34.7 | $ 234.3 | $ 2.05 | $ 293.8 | $ 35.9 | $ 257.9 | $ 2.19 |
Chuy's transaction and integration related costs | - | - | - | - | 3.6 | 0.9 | 2.7 | 0.02 |
Closed restaurants1 | - | - | - | - | 3.1 | 0.8 | 2.3 | 0.02 |
Gain on Olive Garden Canada sale | - | - | - | - | (42.0) | (10.5) | (31.5) | (0.26) |
Adjusted Earnings from Continuing Operations | $ 269.0 | $ 34.7 | $ 234.3 | $ 2.05 | $ 258.5 | $ 27.1 | $ 231.4 | $ 1.97 |
Interest | 50.3 | 45.4 | ||||||
Adjusted Income Tax | 34.7 | 27.1 | ||||||
Adjusted Operating Income | $ 319.3 | $ 303.9 | ||||||
Depreciation and Amortization | 144.2 | 135.1 | ||||||
Adjusted EBITDA | $ 463.5 | $ 439.0 |
1 Costs related to the closure of 22 underperforming restaurants that were permanently closed during the fourth quarter of fiscal 2025
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Fiscal 2027 EBITDA Outlook Reconciliation1
Net Earnings from Continuing Operations | $1.26 billion | to | $1.29 billion |
Interest, Net Income Tax Expense Depreciation and Amortization | $0.21 billion $0.19 billion $0.60 billion | $0.20 billion $0.20 billion $0.60 billion | |
EBITDA | $2.26 billion | to | $2.29 billion |
1 See slide 11 for non-GAAP figure presented.
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Fiscal and Comparable Calendar Dates
Same-Restaurant Sales Calculation Dates Fiscal Calendar Basis Comparable Calendar Basis | |
Q1 | |
June 1, 2026 - August 30, 2026 vs. May 26, 2025 - August 24, 2025 | June 1, 2026 - August 30, 2026 vs. June 2, 2025 - August 31, 2025 |
Q2 | |
August 31, 2026 - November 29, 2026 vs. August 25, 2025 - November 23, 2025 | August 31, 2026 - November 29, 2026 vs. September 1, 2025 - November 30, 2025 |
Q3 | |
November 30, 2026 - February 28, 2027 vs. November 24, 2025 - February 22, 2026 | November 30, 2026 - February 28, 2027 vs. December 1, 2025 - March 1, 2026 |
Q4 | |
March 1, 2027 - May 30, 2027 vs. February 23, 2026 - May 24, 2026 | March 1, 2027 - May 30, 2027 vs. March 2, 2026 - May 31, 2026 |
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