Darden Restaurants Reports Mixed Quarterly Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2026
0mins
Source: CNBC
- Earnings Highlights: Darden reported adjusted earnings per share of $3.66 for the fiscal quarter ending May 31, slightly above the expected $3.63, but total revenue of $3.72 billion fell short of the $3.73 billion forecast, indicating mixed performance.
- Same-Store Sales Performance: Overall same-store sales increased by 4.6%, exceeding the 4.1% expectation; however, Olive Garden's same-store sales grew only 2.4%, missing the 3.2% target, reflecting declining brand competitiveness.
- Segment Analysis: LongHorn Steakhouse led with a 9.5% same-store sales increase, surpassing the 7.1% forecast, while the fine-dining segment's growth of 1.9% fell significantly short of the 3.1% expectation, indicating soft market demand.
- Future Outlook: Darden projects total sales for fiscal 2027 to range between $13.60 billion and $13.75 billion, with earnings per share from continuing operations expected between $11.10 and $11.35, showing cautious optimism despite being below Wall Street's expectations.
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Analyst Views on DRI
Wall Street analysts forecast DRI stock price to rise
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 203.220
Low
200.00
Averages
224.35
High
261.00
Current: 203.220
Low
200.00
Averages
224.35
High
261.00
About DRI
Darden Restaurants, Inc. owns and operates full-service dining restaurants in the United States under the trade names Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Chuy’s, Yard House, Ruth’s Chris Steak House (Ruth’s Chris), The Capital Grille, Seasons 52, Eddie V’s Prime Seafood (Eddie V’s), Bahama Breeze, and The Capital Burger. Its segments include reportable segments: Olive Garden, LongHorn Steakhouse, Fine Dining and Other Business. Olive Garden is a full-service dining Italian restaurant operator in the United States. LongHorn Steakhouse is a full-service steakhouse restaurant brand with locations primarily in the eastern United States. The Fine Dining segment includes brands that operate within the fine-dining sub-segment of full-service dining and includes Ruth’s Chris, The Capital Grille and Eddie V’s restaurants. The Other Business segment includes Cheddar’s Scratch Kitchen, Chuy’s, Yard House, Seasons 52, Bahama Breeze and The Capital Burger restaurants.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Consumer Demand: Despite high prices, demand for steaks remains robust, particularly for premium and organic options, reflecting a willingness among consumers to pay more for quality during special occasions, which could influence future purchasing trends.
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- New Restaurant Openings: The company opened 71 new restaurants in fiscal 2026, surpassing initial plans, demonstrating strong expansion momentum while supporting future revenue growth.
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