Darden Restaurants Inc (NYSE:DRI) stock rose 1.10% (As on June 20, 11:30:02 AM UTC-4, Source: Google Finance) after the company beat Wall Street’s earnings and revenue estimates, while the Olive Garden parent predicted solid growth for fiscal year 2026. Darden reported fiscal fourth-quarter net income of $303.8 million, compared with $308.1 million, a year earlier. Darden’s two standout brands, Olive Garden and LongHorn Steakhouse, reported same-store sales growth that beat expectations. Olive Garden, which accounts for roughly 40% of Dardan’s quarterly revenue, saw same-store sales rise 6.9%, beating analysts’ expectations of 4.6%. LongHorn’s same-store sales increased 6.7%, while analysts were anticipating growth of 5.3%. Cardenas credited Darden’s sales during the quarter, in part, to the return of Olive Garden’s “Buy One Take One” deal after five years, which offers customers a meal to go along with their sit-down meal. Darden’s fine dining segment, which includes Ruth’s Chris Steak House and The Capital Grille, reported a same-store sales decline of 3.3%, compared with the 0.2% decline expected.

Moreover, the company’s remaining segment, which includes Cheddar’s Scratch Kitchen and Yard House, saw same-store sales growth of 1.2%, compared to estimates of 1.1%. In March, Cheddar’s Scratch Kitchen became the next Darden brand, after Olive Garden, to pilot on-demand delivery through a partnership with Uber  Direct. As of last week, delivery is available in all but eight Cheddar’s restaurants. In addition to Darden closing 15 Bahama Breeze restaurants during the quarter, Cardenas said the company will be considering “strategic alternatives” for the entire Bahama Breeze brand, including a potential sale or converting the locations to other Darden brands.

DRI in the fourth quarter of FY25 has reported the adjusted earnings per share of $2.98, beating the analysts’ estimates for the adjusted earnings per share of $2.97, based on a survey of analysts by LSEG. The company had reported the adjusted revenue growth of 10.6 percent to $3.27 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $3.26 billion. This is fueled in part by acquiring 103 Chuy’s restaurants and 25 net new restaurants. The Orlando, Florida-based company’s same-store sales rose 4.6%, beating StreetAccount estimates of 3.5%.

For the full fiscal year 2026, Darden gave a forecast for revenue growth of 7% to 8%, including approximately 2% growth related to having an extra week in the year. It expects adjusted earnings to be in a range of $10.50 to $10.70 per share, including 20 cents related to the additional week.