Jun 28, 2025, 8:00 AM
Jun 28, 2025, 8:00 AM

Darden Restaurants to open 45 new Olive Garden and LongHorn locations next year

Highlights
  • Darden Restaurants plans to open 40-45 new Olive Garden and LongHorn Steakhouse locations next year.
  • The company expects LongHorn to open 25-30 locations annually and Olive Garden to be in the 20-ish range.
  • These expansions reflect Darden's overall growth strategy amid a competitive dining landscape.
Story

In the United States, Darden Restaurants held its fourth-quarter earnings call, revealing plans for substantial expansion in the upcoming year. The company, known for its chains including Olive Garden and LongHorn Steakhouse, is targeting the opening of 40 to 45 new locations across these popular brands. During the call, CFO Rajesh Vennam highlighted a significant growth opportunity, mentioning LongHorn's potential to open 25 to 30 locations annually, while Olive Garden could add around 20 locations for the foreseeable future. This decision reflects Darden’s strategic focus on leveraging its established brands to drive growth amidst competitive dining landscape. Additionally, Darden's portfolio includes other restaurant chains such as Ruth's Chris, Cheddar's Scratch Kitchen, and The Capital Grille. The company's executives indicated that they intend for these other brands to play a larger role in their overall strategy over the coming years, balancing growth across its various offerings. The overall outlook for Darden is optimistic, with a projected sales growth of 7-8% for fiscal 2026, building on the positive trends seen in fiscal 2025, where the company achieved nearly $12.08 billion in sales and net earnings of $1.05 billion. Olive Garden alone reported $5.2 billion in sales for fiscal 2025, marking a 2.8% increase from the previous year. LongHorn Steakhouse saw even higher growth, with annual sales rising by 7.8% to $3.03 billion. These figures underscore the strength of these brands within the casual dining sector, with Olive Garden also ranking highly in customer satisfaction according to the American Customer Satisfaction Index. As the market evolves, Darden's approach to expanding its footprint while exploring other strategic opportunities suggests a proactive stance in maintaining competitive advantage within the restaurant industry. Furthermore, the company is currently considering strategic alternatives for its Bahama Breeze chain, with 28 locations currently in operation. Darden's CEO, Ricardo Cardenas, acknowledged the need to prioritize resources and stated that the Bahama Breeze brand is not a strategic priority for Darden moving forward. The potential sale or transformation of these restaurants to other Darden brands reflects the company's adaptability as it seeks to optimize its brand portfolio in response to market trends and consumer preferences.

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