Key QQ2 2026 metrics and drivers:
- Revenue: $3.1021 billion; YoY growth approximately 7%; QoQ growth ~1.9% (Q2 vs Q1).
- Gross profit: $2.1384 billion; gross margin 68.93%; QoQ gross profit up ~1.08%; YoY gross profit up materially (benefit of Chewy’s inclusion and mix).
- Operating income: $320.4 million; operating margin 10.32%; QoQ margin declined about 5.54% due to seasonal and mix dynamics amid commodity pressure.
- EBITDA: $410.1 million; EBITDA margin 13.22%; reflects ongoing underinflation pricing strategy offsetting beef-cost headwinds.
- Net income: $237.2 million; net income margin 7.65%.
- Diluted EPS: $2.03; GAAP EPS $2.05; YoY EPS growth around mid-teens on an apples-to-apples basis depending on one-time items and the 53rd week contribution (~$0.20 per share impact).
- Diluted shares: ~116.7 million; weighted-average shs out ~115.9 million.
- Segment highlights: Olive Garden SRS ~4.7%, margin 21.8%; LongHorn SRS ~5.9%, margin 16.2%; Yard House SRS ~3.1%, margin 13.4% (Other segment); Fine dining SRS ~0.8% with Ruth’s Chris and Capital Grille contributing to momentum.
- Key levers: 4.5%–5% beef-cost inflation in the quarter, with total commodities inflation around 5.5%; pricing run-rate below inflation by roughly 130 bps at Darden level; Uber Direct delivering ~4% of total sales, about half of which is incremental; 40% Olive Garden locations offered lighter portions in the quarter, system-wide rollout planned for January; 17 new restaurants opened in the quarter; guidance updated for fiscal 2026; 53rd week adds roughly $0.20 to full-year diluted EPS.
- Capital allocation and cash flow: Adjusted EBITDA of $466 million; cash returned to shareholders of $396 million (dividends $174 million, share repurchases $222 million). Capex guidance remains $750–$775 million for the year, with total openings projected at 65–70 units, and total diluted shares outstanding at ~116.5 million.