Darden Restaurants (NYSE:DRI) Full Year 2025 Results

Key Financial Results

• Revenue: US$12.1b (up 6.0% from FY 2024).
• Net income: US$1.05b (up 2.0% from FY 2024).
• Profit margin: 8.7% (down from 9.0% in FY 2024). The decrease in margin was driven by higher expenses.
• EPS: US$8.95 (up from US$8.60 in FY 2024).

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All figures shown in the chart above are for the trailing 12 month (TTM) period

Darden Restaurants EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.1%.

The primary driver behind last 12 months revenue was the Olive Garden segment contributing a total revenue of US$5.21b (43% of total revenue). Notably, cost of sales worth US$9.43b amounted to 78% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$545.1m (34% of total expenses). Explore how DRI's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 9.6% growth forecast for the Hospitality industry in the US.

Performance of the American Hospitality industry.

The company's shares are up 1.2% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 3 warning signs for Darden Restaurants that you need to be mindful of.

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