Short answer
Darden Restaurants (DRI) filed its fiscal 2026 10-K annual report with the SEC on Jul 24, 2026. It reported revenue of $13.2B (+9.4% year over year) and net income of $1.2B.
- Top risk flagged: Regulatory risk: compliance with evolving federal, state, and local labor laws including minimum wage increases and employment regulations impacting labor costs
FY2026 key financial metrics · XBRL
- Revenue
- $13.2B
- +9.4% YoY
- Net income
- $1.2B
- +15.0% YoY
- Operating margin
- 12.0%
- +0.7 pp YoY
- Gross margin
- 20.3%
- −0.2 pp YoY
- EPS (diluted)
- $10.38
- +17.2% YoY
- ROE
- 54.7%
- +9.3 pp YoY
- Operating cash flow
- $1.9B
- +8.6% YoY
Source: XBRL data from the Darden Restaurants (DRI) FY2026 10-K on SEC EDGAR. USD.
Darden Restaurants FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Largest U.S. full-service restaurant company operating 2,202 owned restaurants across 11 brands primarily in the U.S. market
- Strategic shift: Closed ~50% of Bahama Breeze restaurants; converting remainder to other Darden brands over 12–18 months starting FY 2026
- Expansion: Added 43 net new U.S. restaurants in FY 2026; projected 75-80 openings in FY 2027 across major brands with $4.3M-$10.2M capital investment per unit
- Notable metric: Workforce of 209,931 team members, with 67% employee turnover rate; one of the lowest in the restaurant industry
- Unique fact: Sold eight Olive Garden Canada restaurants in FY 2026 to Recipe Unlimited but retained brand royalties via franchise agreement
Management Discussion & Analysis
- Revenue $13.21B in fiscal 2026, up 9.4% YoY from $12.08B; driven by extra week, 4.5% same-restaurant sales growth, 43 net new restaurants
- Operating margin 12.0% in fiscal 2026 vs 11.3% in 2025; net earnings $1.21B, up 15.5%; diluted EPS $10.44 vs $8.88, up 17.6%
- Best performing segment: Olive Garden sales $5.59B, 7.3% growth, margin 22.5% vs 22.3%; Worst: Fine Dining margin 17.7% vs 18.6%, 90bps decline
- Operating cash flow $1.85B, capex $734M; dividends paid $693M ($6.00/share); share repurchases $671.7M; financing included $194M commercial paper proceeds
- Fiscal 2027 sales guidance $13.60B-$13.75B, same-restaurant sales growth 2.5%-3.5%; capex guidance approx. $875M; ongoing Bahama Breeze brand closures/conversions
Risk Factors
- Regulatory risk: compliance with evolving federal, state, and local labor laws including minimum wage increases and employment regulations impacting labor costs
- Macroeconomic threat: inflationary conditions in fiscal 2026 raising costs of commodities (beef, poultry, seafood), labor, and utilities, pressuring operating margins
- Supply chain vulnerability: reliance on limited suppliers, risk of shortages or delays from weather, animal disease outbreaks, trade disputes, affecting product availability and costs
- Competitive risk: rising competition from restaurant chains, grocery prepared foods, and delivery aggregators increasing pressure on pricing, guest traffic, and marketing effectiveness
- Financial risk: long-term lease obligations on 2,104 of 2,202 U.S. restaurants, exposing company to fixed costs on closed or underperforming locations
Generated from the filing text; verify against the original. How to read a 10-K
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