Shares of Darden Restaurants, the parent company of Olive Garden, LongHorn Steakhouse, and other restaurant chains, surged on Friday after the company announced better-than-expected earnings and revenue. The company also projected strong growth for fiscal year 2026.

The company’s performance, as compared to analysts’ expectations:

• Earnings per share: $2.98 adjusted vs. $2.97 expected
• Revenue: $3.27 billion vs. $3.26 billion expected

Darden reported net income for the fiscal fourth quarter of $303.8 million, or $2.58 per share, compared to $308.1 million, or $2.58 per share, the previous year.

Excluding costs associated with the acquisition of Chuy’s Tex Mex, Darden earned $2.98 per share for the three-month period ending May 25.

Net sales increased by 10.6% to $3.3 billion, boosted by the acquisition of 103 Chuy’s restaurants and 25 net new restaurants.

Same-store sales for the Orlando,Florida-based company rose 4.6%, surpassing StreetAccount estimates of 3.5%.

For fiscal year 2026, Darden forecasts revenue growth of 7% to 8%, which includes approximately 2% growth due to an extra week in the year. adjusted earnings are expected to range from $10.50 to $10.70 per share, including 20 cents related to the additional week.

Consumer Spending Trends

Despite indications that consumers are reducing their spending, Darden Restaurants CEO Rick Cardenas stated during a call with analysts on Friday that consumers are continuing to spend on casual dining.

“Our consumers want to go out and spend their hard-earned money.And we think we’re taking some wallet share from fast food and fast casual,”

Darden’s standout brands, Olive Garden and LongHorn Steakhouse, both reported same-store sales growth that exceeded expectations. Olive Garden, which accounts for approximately 40% of Darden’s quarterly revenue, saw same-store sales increase by 6.9%, surpassing analysts’ expectations of 4.6%. LongHorn’s same-store sales rose by 6.7%, while analysts had anticipated growth of 5.3%.

Cardenas attributed darden’s sales during the quarter, in part, to the return of Olive Garden’s “Buy One Take One” deal after five years, which provides customers with a meal to take home with their dine-in 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 to the expected 0.2% drop.

CFO Raj Vennam informed analysts on the call that the fine dining category continues to face challenges, but the company is observing improved guest traffic from households earning $150,000 and above.

The company’s remaining segment, including Cheddar’s Scratch Kitchen and Yard house, experienced same-store sales growth of 1.2%, compared to estimates of 1.1%.

In March, Cheddar’s Scratch Kitchen followed Olive Garden in piloting on-demand delivery through a partnership with