Research · Sep 3, 2026
[DRI] Darden Thesis 2026: Ruth's Chris Integration and LongHorn Momentum Offset Olive Garden Casual Dining Pressure
Darden delivered FY2025 revenue of ~$12.1B with Ruth's Chris fully integrated and generating procurement synergies ahead of plan. LongHorn continues to be the portfolio's fastest-growing casual brand (+3% SRS) while Olive Garden stabilized at modest positive SRS (+2%) against industry-wide casual dining traffic headwinds. Adj. EPS ~$9.55 grew ~8% driven by Ruth's Chris synergies and Darden's consistent buyback program. FY2026 thesis rests on whether Darden's portfolio diversification (steakhouse, Italian, fine dining, value casual) insulates earnings from any single casual dining category recession — and whether LongHorn reaches $3B revenue as the company's second-largest brand.