Darden Restaurants (DRI) shares surged 5.05% in pre-market trading on Friday, following the release of its fiscal fourth-quarter results that exceeded expectations and the announcement of a new share repurchase program.
The owner of Olive Garden and LongHorn Steakhouse reported adjusted earnings per share of $2.98 for the quarter ended May 25, slightly above analysts' estimates of $2.97. Sales reached $3.27 billion, edging past expectations of $3.26 billion. The company's performance was driven by strong same-restaurant sales growth, with Olive Garden and LongHorn Steakhouse both posting impressive gains of 6.7%.
Investors were particularly encouraged by Darden's optimistic outlook for fiscal 2026. The company forecasts annual same-store sales growth of 2% to 3.5%, surpassing analysts' expectations. Additionally, Darden announced a new $1 billion share repurchase program and increased its quarterly dividend by 7.1% to $1.50 per share. These shareholder-friendly moves, coupled with the strong results and positive guidance, have fueled investor enthusiasm, leading to the significant pre-market rally.
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