What Happened to Darden Restaurants, Inc.?
Darden Restaurants is a leading full-service restaurant company that owns and operates a portfolio of popular brands, including Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House. The company has demonstrated consistent growth through strategic acquisitions and strong operational performance, navigating market challenges to maintain its position as a dominant player in casual and fine dining. As of mid-2026, Darden continues to expand its footprint and return value to shareholders while strategically optimizing its brand portfolio.
Quick Answer
Darden Restaurants remains a robust and expanding leader in the full-service dining sector as of August 2026. The company reported strong fiscal year 2026 results with total sales increasing to $13.21 billion and diluted net earnings per share rising to $10.44. Key brands like LongHorn Steakhouse and Olive Garden continue to drive growth, while Darden has strategically acquired Ruth's Chris Steak House in 2023 and Chuy's Tex-Mex in 2024. The company is also in the process of closing or converting its Bahama Breeze locations to other brands, focusing on higher-performing assets and returning capital to shareholders through increased dividends and share repurchases.
📊Key Facts
📅Complete Timeline15 events
Bill Darden Opens First Restaurant
William 'Bill' Darden opens his first restaurant, 'The Green Frog,' in Waycross, Georgia, at the age of 19.
First Red Lobster Opens
Bill Darden opens the first Red Lobster restaurant in Lakeland, Florida, laying the groundwork for the future Darden Restaurants.
General Mills Acquires Red Lobster
General Mills, Inc. acquires the Red Lobster chain, providing capital for its national expansion.
First Olive Garden Opens
General Mills opens the first Olive Garden concept restaurant in Orlando, Florida, which quickly becomes a successful chain.
Darden Restaurants Spins Off from General Mills
Darden Restaurants becomes an independent public company, spinning off from General Mills.
Acquires Rare Hospitality
Darden acquires Rare Hospitality International for $1.4 billion, adding LongHorn Steakhouse and The Capital Grille to its portfolio.
Sells Red Lobster
Darden completes the sale of its Red Lobster chain to Golden Gate Capital for $2.1 billion, focusing on its other brands.
Rick Cardenas Becomes CEO
Rick Cardenas, a long-time Darden executive, assumes the role of President and Chief Executive Officer.
Acquires Ruth's Chris Steak House
Darden acquires Ruth's Chris Steak House for $715 million, further expanding its fine dining segment.
Acquires Chuy's Tex-Mex
Darden acquires Chuy's Tex-Mex for $605 million, adding a full-service Mexican concept to its brand portfolio.
Reports Strong Fiscal 2025 Results and Increases Dividend
Darden reports fiscal 2025 fourth quarter and full year results, with total sales increasing 6.0% to $12.1 billion. The company also increases its quarterly dividend by 7.1% and authorizes a new $1 billion share repurchase program.
Signals Continued M&A and Bahama Breeze Review
Darden's CFO indicates the company will continue to be aggressive on mergers and acquisitions, and that strategic alternatives are being considered for the Bahama Breeze brand.
Reports Solid Q3 Fiscal 2026 Results and Bahama Breeze Conversions
Darden reports Q3 fiscal 2026 results with total sales up 5.9% and same-restaurant sales up 4.2%. The company also announces plans to close or convert all Bahama Breeze locations to other Darden brands between Q3 fiscal 2026 and Q4 fiscal 2027.
Reports Strong Fiscal 2026 Full Year Results and Increased Shareholder Returns
Darden reports fiscal 2026 full year results with total sales increasing 9.4% to $13.21 billion. The company increases its quarterly dividend by 8.0% and authorizes a new $1.5 billion share repurchase program.
Stock Reaches 52-Week High
Darden Restaurants' stock hits a 52-week high of $221.00, reflecting strong investor confidence following robust fiscal 2026 results and positive analyst outlooks.
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🔍Deep Dive Analysis
Darden Restaurants, Inc. traces its origins back to 1938 when Bill Darden opened 'The Green Frog' restaurant in Waycross, Georgia. The company's foundation was truly laid with the opening of the first Red Lobster in 1968, which was later acquired by General Mills in 1970. Darden continued to grow under General Mills, launching Olive Garden in 1982, which quickly became a successful chain. In 1995, Darden Restaurants was spun off from General Mills, becoming an independent public company.
Over the subsequent decades, Darden strategically expanded its portfolio through both organic growth and significant acquisitions. Notable additions include LongHorn Steakhouse and The Capital Grille in 2007 through the acquisition of Rare Hospitality. The company divested its Red Lobster chain in 2014 to focus on its other brands. More recently, Darden continued its acquisition strategy, purchasing Ruth's Chris Steak House for $715 million in 2023, adding another fine dining brand to its upscale segment. This was followed by the acquisition of Chuy's Tex-Mex for $605 million in July 2024, marking its entry into the full-service Mexican segment.
Leadership transitioned in May 2022, with Rick Cardenas, a 35-year veteran of the company, taking over as President and CEO. Under his leadership, Darden has emphasized operational excellence and strategic portfolio management. The company reported strong financial results for fiscal year 2026 (ended May 31, 2026), with total sales increasing 9.4% to $13.21 billion and diluted net earnings per share reaching $10.44. Same-restaurant sales for fiscal 2026 increased by 4.5%, with LongHorn Steakhouse showing particularly strong performance at 9.5% growth in Q4 2026.
A key strategic development in 2026 has been the decision to close or convert all Bahama Breeze locations to other Darden brands between Q3 fiscal 2026 and Q4 fiscal 2027, signaling a pivot towards higher-yield assets. Darden also continues to expand its physical footprint, planning 75 to 80 new restaurant openings in fiscal 2027. The company has been actively returning capital to shareholders, increasing its quarterly dividend by 8.0% in June 2026 and authorizing a new $1.5 billion share repurchase program. As of August 2026, Darden's stock hit a 52-week high, reflecting accelerating investor confidence in its resilience and strategic positioning.
What If...?
Explore alternate histories. What if Darden Restaurants, Inc. made different choices?