Restaurant Brands International intends to expand both Olive Garden and LongHorn Steakhouse chains, aiming for approximately 40 new locations in the upcoming year.
Darden Restaurants, the American dining giant, has revealed its plans for continued growth and development of its key brands, particularly Olive Garden and LongHorn Steakhouse, over the next few years. The full-service restaurant market, where Darden operates, is projected to grow at a compound annual growth rate (CAGR) of 4.8% from 2025 to 2032, creating a favourable environment for Darden's expansion.
As of late May 2023, Darden operated over 930 Olive Garden locations and over 590 LongHorn Steakhouses. In fiscal 2025, the company generated nearly $12.08 billion in sales, with net earnings of $1.05 billion. Olive Garden and LongHorn Steakhouse contributed significantly to these figures, with Olive Garden generating $5.2 billion in sales, marking a 2.8% increase from the prior year, and LongHorn Steakhouse's annual sales rising by 7.8% to $3.03 billion.
The CEO of Darden, Ricardo Cardenas, has confirmed that while the Bahama Breeze brand is not a strategic priority for the company, other brands within Darden's portfolio, including Ruth's Chris, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Chuy's, Seasons 52, and Eddie V's, will start to contribute more to Darden's brand mix in the next few years.
In line with this growth, Darden is planning to open 40 to 45 new Olive Garden and LongHorn Steakhouse restaurants next year. The company expects to be in the 3-plus percent range for unit growth over the next five years, with Yard House opening in the mid-single digits, and other brands contributing another 15 or so openings this year.
Darden believes there is still "huge opportunity" for LongHorn to open 25 to 30 locations a year and Olive Garden to be "in the 20-ish range for the foreseeable future." The company is considering strategic alternatives for its 28-location Bahama Breeze chain, including a potential sale of the brand or converting restaurants to other Darden brands.
Notably, LongHorn Steakhouse ranked No. 2 for customer satisfaction among full-serve chains in a recent American Customer Satisfaction Index study, demonstrating Darden's commitment to improving guest experience through innovation and service enhancements.
In conclusion, Darden Restaurants is poised for continued expansion of its leading brands, Olive Garden and LongHorn Steakhouse, capitalizing on favourable market growth conditions. While specific expansion numbers, investment amounts, or timelines for these brands have not been officially disclosed, industry trends suggest that full-service restaurants are primed for growth, aligning with Darden's likely plans to leverage its top brands to capture more market share.
- Darden Restaurants anticipates increased revenue from its portfolio brands, particularly Olive Garden and LongHorn Steakhouse, given their significant contributions to the company's sales in fiscal 2025 and the projected growth of the full-service restaurant markets.
- To further capitalize on market opportunities, Darden is planning to invest in expanding its key brands, such as Yard House, The Capital Grille, Chuy's, Seasons 52, and Eddie V's, while also considering strategic alternatives for the Bahama Breeze chain, including a possible sale or conversion to other Darden brands in search of further capital growth.
