Darden Restaurants, Inc. DRI
- Market cap
- $23.5B
- P/E
- 19.1×
Follow DRI
Target Price Range
Analyst price targets
Free account| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 71.02 | 82.38 | 97.91 | 26.15 | 110.89 | 110.96 | 133.36 | 135.87 | 169.00 | 183.34 |
Analyst estimates 2027–2029 Powerpack |
Low Price
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| 98.36 | 124.00 | 128.41 | 125.96 | 164.28 | 155.25 | 173.06 | 189.18 | 228.27 | 229.76 |
High Price
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| 175,000 | 180,000 | 185,000 | 177,000 | 160,000 | 178,956 | 187,384 | 191,105 | 197,924 | 209,931 |
Employees
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| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Revenue/Emp
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| 7,170 | 8,080 | 8,510 | 7,807 | 7,196 | 9,630 | 10,488 | 11,390 | 12,077 | 13,211 |
Revenue
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| 21.89% | 21.60% | 21.73% | 18.04% | 20.75% | 20.72% | 20.11% | 21.37% | 21.88% | 21.67% |
Gross Margin
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| 637 | 606 | 782 | (161) | 577 | 1,094 | 1,121 | 1,176 | 1,187 | 1,389 |
EBT
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| 8.89% | 7.50% | 9.19% | (2.06%) | 8.01% | 11.36% | 10.68% | 10.32% | 9.83% | 10.51% |
EBT Margin
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| 479 | 596 | 713 | (52) | 629 | 953 | 982 | 1,028 | 1,050 | 1,207 |
Net Income
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| 273 | 313 | 337 | 356 | 351 | 368 | 388 | 460 | 516 | 561 |
Depreciation
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| 57.68 | 65.16 | 68.91 | 63.63 | 55.18 | 75.35 | 86.04 | 95.00 | 102.78 | 114.38 |
Revenue/Sh
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| 3.85 | 4.81 | 5.78 | (0.43) | 4.83 | 7.46 | 8.06 | 8.57 | 8.93 | 10.45 |
Earnings/Sh
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| 7.37 | 8.22 | 10.26 | 5.85 | 9.15 | 9.90 | 12.74 | 13.53 | 14.53 | 16.04 |
Cash Flow/Sh
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| (2.49) | (3.35) | (3.76) | (3.90) | (2.03) | (3.07) | (4.67) | (5.21) | (5.70) | (6.19) |
Capex/Sh
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| 4.88 | 4.87 | 6.50 | 1.95 | 7.12 | 6.82 | 8.07 | 8.31 | 8.83 | 9.85 |
Free CF/Sh
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| 16.91 | 17.70 | 19.37 | 19.00 | 21.57 | 17.20 | 18.06 | 18.70 | 19.67 | 19.11 |
Book Value/Sh
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| 124 | 124 | 124 | 123 | 130 | 128 | 122 | 120 | 118 | 116 |
Shares
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| 23.10 | 18.17 | 20.16 | 0.00 | 28.43 | 16.73 | 19.64 | 17.53 | 24.28 | 19.28 |
PE Ratio
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| 1.54 | 1.34 | 1.69 | 1.23 | 2.49 | 1.66 | 1.84 | 1.58 | 2.11 | 1.77 |
PS Ratio
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| 5.26 | 4.94 | 6.00 | 4.12 | 6.37 | 7.27 | 8.78 | 8.04 | 11.02 | 10.56 |
PB Ratio
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| 1.64 | 1.44 | 1.74 | 1.31 | 2.47 | 1.73 | 1.91 | 1.74 | 2.31 | 1.92 |
EV/Sales
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| 19.41 | 19.24 | 18.49 | 42.77 | 19.18 | 19.10 | 20.36 | 19.83 | 26.92 | 22.23 |
EV/FCF
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| 916 | 1,020 | 1,268 | 717 | 1,194 | 1,265 | 1,553 | 1,622 | 1,707 | 1,853 |
Op' Cash Flow
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| (310) | (415) | (465) | (479) | (265) | (392) | (569) | (625) | (669) | (715) |
Capex
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| 606 | 604 | 803 | 239 | 929 | 872 | 984 | 997 | 1,038 | 1,138 |
FCF
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| (701) | (831) | (581) | (691) | 23 | (668) | (940) | (1,370) | (1,310) | (2,062) |
Working Cap'
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| 937 | 927 | 928 | 1,365 | 1,114 | 1,104 | 1,081 | 1,370 | 2,129 | 1,638 |
Total Debt
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| 704 | 780 | 470 | 602 | (101) | 683 | 713 | 1,176 | 1,889 | 1,418 |
Net Debt
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| 2,102 | 2,195 | 2,393 | 2,331 | 2,813 | 2,198 | 2,202 | 2,243 | 2,311 | 2,208 |
Sh' Equity
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| 9.70% | 11.08% | 12.56% | (0.66%) | 6.11% | 9.17% | 9.64% | 9.53% | 8.78% | 9.48% |
ROA
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| 15.09% | 16.11% | 18.17% | 1.02% | 14.95% | 25.21% | 25.77% | 24.03% | 20.27% | 27.28% |
ROIC
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| 23.64% | 27.74% | 31.10% | (2.22%) | 24.47% | 38.03% | 44.63% | 46.25% | 46.10% | 53.41% |
ROE
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Darden Restaurants, Inc. peers in Restaurants
| Company | Market cap | P/E | Compare |
|---|---|---|---|
| QSR Restaurant Brands International Inc. | $33.4B | 19.2× | Compare |
| YUM Yum! Brands, Inc. | $37.8B | 17.3× | Compare |
| YUMC Yum China | $13.8B | 14.8× | Compare |
| CMG Chipotle Mexican Grill, Inc. | $40.8B | 28.7× | Compare |
| Company | Market cap | P/E | Compare |
|---|---|---|---|
| TXRH Texas Roadhouse, Inc. | $10.6B | 25.5× | Compare |
| DPZ Domino's Pizza Inc | $9.7B | 16.6× | Compare |
| EAT Brinker International, Inc. | $8.6B | 18.5× | Compare |
| BROS Dutch Bros Inc. | $6.8B | 52.8× | Compare |
DRI metrics, ten years each
- Revenue
- Net income
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
Darden Restaurants, Inc. (DRI) key facts
- Darden Restaurants, Inc. (DRI) is a Restaurants company in the Consumer Cyclical sector, listed on the New York Stock Exchange.
- Darden Restaurants, Inc.’s revenue for fiscal 2026 (year ended May 2026) was $13.2 billion, up 9.39% from fiscal 2025.
- Net income was $1.2 billion, or $10.45 per share (basic), a net margin of 9.13%.
- As of September 25, 2026, DRI traded at $199.75, a market capitalization of $23.5 billion.
- At that price the stock trades at 19.1× trailing-twelve-month earnings and 1.7× sales.
- Darden Restaurants, Inc. pays an annual dividend of $5.04 per share, a yield of 3.15%, with a payout ratio of 61.4%.
- Return on equity was 53.4% and debt-to-equity 0.74.
Darden Restaurants, Inc. (DRI) Latest News
25 Sep
DRI posted Q3 CY2026 revenue of $3.2 billion, up 5.1% YoY and about in line with expectations. GAAP EPS was $2.04, roughly 1.3% below consensus. Operating margin fell to 10% from 11.1% a year earlier. The company operated 2,218 locations, up from 2,165. Same-store sales rose 3.1% (vs. 4.7% a year ago). Management cited World Cup-related guest declines and lettuce-supply concerns at Olive Garden as headwinds, even as Yard House delivered strength. Darden reaffirmed full-year GAAP EPS guidance around $11.23, while pursuing menu innovation, marketing, and cost discipline. Pricing ran about 3.7% for the quarter; plans include Yard House expansion, new prototypes, and lunch-platform tests to boost weekday traffic. Commodity and labor costs remain a focus. Shares traded near $207 after the report. Revenue met expectations but EPS missed and margins declined, indicating moderate near-term risk despite growth initiatives.
24 Sep
Darden’s Q1 2027 showed strength from a diversified portfolio, with margin expansion at LongHorn offsetting investments at Olive Garden and the Bahama Breeze wind-down. Olive Garden delivered 1% same-restaurant sales despite World Cup headwinds and a lettuce scare that spurred marketing pivots. LongHorn posted continued SSS growth as it focuses on food quality and simplicity; Yard House hit $1 billion in annual sales driven by menu upgrades and its role as a social venue during World Cup events. Chuy’s integration remains on track with high single-digit unit growth potential outside Texas. Pricing was raised for Never-Ending Pasta Bowl after five years to $13.99, supported by higher protein buy-up; Olive Garden tests a new weekday lunch platform. Outlook includes a 1% Q2 sales headwind from Thanksgiving timing, 3% commodity inflation, Yard House’s smaller prototype, and pricing moderating to the low-to-mid 2% range by Q4. Bahama Breeze closure weighs 30 bps on Other margin; 10–15 bps fuel surcharge risk. Pricing power, mix shifts, and portfolio optimization are likely to meaningfully affect margins and growth.
Darden Restaurants started fiscal 2027 with 5.1% sales growth to $3.2 billion, supported by 53 net new restaurants and 3.2% same-restaurant growth. LongHorn Steakhouse drove momentum with 6.8% comps and 10.9% total sales; Yard House posted 10% comps as World Cup crowds boosted visits. Olive Garden gained 1% comps, though lunch traffic remains under pressure and lettuce concerns helped trim headlines. World Cup events shaved about 80 basis points from companywide comps, while the brand’s lunch platform and lighter-portion items are being tested to revive weekday lunch, which accounts for roughly 20% of Olive Garden traffic. Price increases averaged 3.7% in Q1 and are expected to ease to the low- to mid-2% range; beef costs are seen rising at a low-single-digit rate. Darden plans more unit growth (including Yard House conversions) and continued menu/product innovation to sustain momentum. Lunch revival initiatives and ongoing expansion across core brands create meaningful upside to revenue and margins over time.
Darden Restaurants reported a solid first quarter of fiscal 2027: sales rose 5.1% to $3.2 billion, with comparable-store sales up 3.2% and adjusted EPS up 4.1% to $2.05. The firm reaffirmed full-year EPS guidance of $11.10–$11.35. LongHorn Steakhouse led with 6.8% comp growth and an 18% segment margin; Yard House posted 10% comp growth and topped $1 billion in trailing 52-week sales, as the company plans 53 net new openings. Olive Garden grew modestly amid favorable two-year comparisons and the Never-Ending Pasta Bowl promotion. Darden aims to expand Yard House, Cheddar's, and Chuy's and to grow weekday lunch at Olive Garden. Pricing ran 3.7% for the quarter; commodity inflation is expected around 3% for the year, with pricing moderating to the low-to-mid 2% by Q4. Overall, demand remained resilient, guiding reaffirmed outlook. Reaffirmed guidance and multi-brand expansion plans suggest meaningful, long-term upside.
Darden posted Q1 FY2027 results: total sales $3.2 billion, up 5.1% YoY; comparable calendar sales +3.2%. EPS $2.05, +4.1%; restaurant-level EBITDA 18.8%, flat. All segments posted positive same-restaurant sales; Olive Garden +1% with NEPB promotions and added protein items; NEPB kicked off with 10,000 Pasta Passes sold and 3 million devices logged in. LongHorn +6.8% and Yard House led growth in Other Business; Yard House surpassed $1 billion in trailing 52 weeks, and 53 net new restaurants were added across the portfolio. Bahama Breeze is winding down; Cheddar's and Chuy's highlighted as growth brands. FY27 guidance reiterated at $11.10–$11.35 per share; Thanksgiving shift creates about 1% Q2 headwind with offset in Q3. Pricing run-rate was 3.7% in Q1; expected mid-to-high 2% for the year; commodities near 3%. Management emphasized disciplined investments, ongoing unit growth, and a diversified portfolio. Solid quarter with reaffirmed guidance and diversified brand momentum, but no transformative changes.
DRI posted Q1 FY2027 sales of $3.2 billion, up 5.1% year over year, aided by 53 net new restaurants and 3.2% same-restaurant growth on a comparable calendar basis. Diluted earnings per share from continuing operations rose 4.1% to $2.05; EBITDA was $464 million and continuing-operations earnings were $234 million (7.3% of sales). Restaurant-level EBITDA margin stayed at 18.8%. Food and beverage costs rose 30 basis points as pricing aligned with 3.5% commodity inflation; labor costs fell 30 basis points on productivity and mix; other expenses were flat. The company reaffirmed its fiscal 2027 outlook (diluted EPS of $11.10 to $11.35). Yard House reached $1 billion in trailing 52-week sales and plans 13 new restaurants; Olive Garden, LongHorn, Cheddar’s and other units showed strength. Positive drivers include Never-Ending Pasta Bowl promotions and favorable beef pricing; World Cup and lettuce concerns weighed on Olive Garden briefly. The quarter shows solid momentum and reaffirmed guidance, implying a moderate near-term impact rather than a transformative change.
Shares of Darden Restaurants slipped 2.2% in pre-market after Q3 CY2026 results missed consensus on earnings despite in-line revenue. Sales rose 5.1% to $3.2 billion; blended same-restaurant sales up 3.1%. GAAP EPS of $2.04 missed by $0.03. Operating margin fell to 10.0% from 11.1%, and free cash flow margin dropped to 3.2% from 5.5%. Performance within the portfolio was mixed: LongHorn Steakhouse delivered 6.2% same-store sales growth and lifted segment profit to $154.6 million, while Olive Garden grew 1.1% with segment profit of $270.8 million. Higher restaurant labor costs ($1,028.9 million) and food/beverage expenses ($984.9 million) weighed on restaurant-level margins. Darden reaffirmed full-year diluted EPS guidance of $11.10–$11.35. The stock later traded near $211.42, with the market flagging only modest near-term implications, while long-term demand catalysts remain under consideration. Earnings miss and margin compression amid rising costs signal a moderate near-term impact on profitability and investor sentiment.
Darden Restaurants reported a Q1 earnings miss as Olive Garden’s growth slowed and costs rose, signaling near-term margin pressure. The 8:30 Yahoo Finance panel—Julie Hyman, Jake Conley, and Pras Subramanian—dissects the miss and its implications for DRI’s portfolio. Softer top-line growth, higher labor and other expenses, and potential mix effects are key concerns, with investors watching whether pricing, efficiency gains, or guidance revisions can offset headwinds. Q1 miss with slower Olive Garden growth and higher costs signals near-term margin pressure and a slower growth trajectory.
Darden Restaurants, Inc. reported Q1 fiscal 2027 results with revenue of $3.2 billion, missing the $3.21 billion consensus, while adjusted EPS of $2.05 matched expectations. Revenue rose 5.1% year over year. Blended same-restaurant sales were up 3.1% on a fiscal-calendar basis and 3.2% on a comparable-calendar basis. LongHorn Steakhouse posted 6.2% same-restaurant sales growth; Olive Garden rose 1.1%. Olive Garden generated $1.33 billion in sales; LongHorn $860.9 million; Fine Dining segment $304.2 million with $39.6 million in segment profit. Darden reaffirmed fiscal 2027 guidance of $11.10–$11.35 per share (midpoint about $11.23 vs consensus $11.28). The company bought back $222.3 million of stock and declared a quarterly dividend of $1.62 per share. End of quarter: 2,218 company-owned restaurants. Shares fell about 5.6% premarket on the results. CEO Rick Cardenas called it a solid start with positive momentum across brands. Revenue miss with inline EPS and in-line guidance suggests a modest near-term impact on sentiment and expectations.
Darden Restaurants reported fiscal first-quarter net income of $233.4 million, or $2.04 per share, down from $257.8 million, or $2.19 per share, a year earlier, as total sales rose 5.1% to $3.2 billion for the quarter ended Aug. 30. Operating costs and expenses rose 6.5% to $2.88 billion, driven by higher food, beverage and labor costs. Companywide same-restaurant sales rose 3.1%, with LongHorn up 6.2%, Olive Garden up 1.1%, and The Capital Grille and Ruth’s Chris Steak House up 1.6%, while the “other” division contributed 3.8%. Darden stock fell about 5% in premarket trading. Analysts projected EPS of $2.06 on revenue of $3.21 billion and same-store sales of 3.3%. The company repurchased roughly 1.1 million shares for $222.3 million, with $1.3 billion remaining under a $1.5 billion buyback; full-year guidance for 2027 remains unchanged: sales $13.60-$13.75 billion and continuing-operations EPS of $11.10-$11.35. Rising costs and Olive Garden's modest growth weigh on profitability despite overall sales gains and unchanged full-year guidance.
Trump-Xi meet as oil climbs and bond yields reach multi-decade highs; jobless claims remain near historic lows. Darden Restaurants reported fiscal Q1 results that fell short of expectations: EPS of $2.05, missing by $0.01; revenue of $3.2 billion, short of consensus by about 0.14%. Comps rose 3.1% year over year but trailed estimates. Olive Garden underperformed, contributing to roughly a 3% drop in DRI shares ahead of the open. After today’s session, Costco COST is slated to report fiscal Q4 results, underscoring a mixed macro backdrop for consumer stocks. Q1 earnings miss and Olive Garden underperformance suggest modest near-term headwinds for DRI's sales and investor sentiment.
Darden Restaurants reported fiscal first-quarter revenue of $3.2 billion, up 5.1% from a year earlier, but fell short of Wall Street estimates for fiscal 2027 first quarter. Same-restaurant sales rose 3.1% across the portfolio, with LongHorn Steakhouse up 6.2% and Olive Garden up 1.1%. Earnings from continuing operations declined 9.2% to $234.3 million, partly due to the absence of a $42 million gain from Olive Garden Canada; diluted EPS from continuing ops fell to $2.05, while adjusted EPS rose 4.1% to $2.05. The company repurchased $222.3 million of shares, leaving $1.3 billion under its $1.5 billion authorization. CEO Rick Cardenas called the quarter a solid start, and Darden reaffirmed its fiscal 2027 outlook of $11.10 to $11.35 per share. The company operates 2,218 restaurants across brands including Yard House, Ruth's Chris Steak House, The Capital Grille and Cheddar's Scratch Kitchen. Revenue growth is tempered by missing estimates and lower GAAP earnings, though adjusted earnings and guidance reaffirmation provide balanced outlook.
Darden Restaurants posted fiscal Q1 2027 results with adjusted EPS of $2.05 and total sales of $3.20 billion, both slightly below Wall Street estimates but up year over year. Blended same-restaurant sales rose 3.1% on a fiscal-calendar basis, with all four segments—Olive Garden, LongHorn Steakhouse, Fine Dining and Other—posting positive comps. Operating costs rose 6.5% YoY, reducing operating income to $319.3 million from $339.2 million a year earlier (the prior year included a $42 million gain from Olive Garden Canada). The company repurchased about 1.1 million shares for $222.3 million and paid a quarterly dividend of $1.62. For fiscal 2027, Darden reaffirmed guidance: sales of $13.60-$13.75 billion, same-restaurant growth of 2.5%-3.5%, 75-80 new restaurants, and EPS from continuing operations of $11.10-$11.35, with capex around $875 million. Stock dropped about 5% pre-market on the miss. Missed near-term estimates despite year-over-year growth, yet reaffirmed full-year guidance suggests a balanced impact with modest near-term sentiment shift.
Olive Garden posted 1% same-store sales growth for the quarter ended Aug. 30, as a cyclospora lettuce scare and World Cup headwinds weighed on results, though momentum improved later. The chain wasn’t implicated in the outbreak; lettuce concerns shaved 150–200 basis points, with lighter portions adding about 50 bps to negative mix. CFO Raj Vennam said headwinds eased, and Olive Garden restarted its Never-Ending Pasta Bowl in late August, receiving a positive response, while planning a weekday-lunch revival of unlimited soup, salad, and breadsticks and testing a value-priced lunch platform. Darden reaffirmed fiscal 2027 guidance. For the quarter, company-wide same-store sales rose 3.2% (LongHorn +6.8%, Other +4.5%, Fine Dining +1%). Revenue was $3.2B ($1.3B Olive Garden, $860M LongHorn); net earnings fell 9.4% to $233.4M. Olive Garden added 20 and LongHorn 29 restaurants (953 and 624). Cyclospora-related lettuce concerns caused a 150–200 basis-point sales drag and weighed on near-term performance, though later improvements and promotions mitigate longer-term impact.
DRI reported $3.2 billion in revenue for the quarter ended August 2026, up 5.1% year over year, and EPS of $2.05, up from $1.97. Revenue was a slight miss vs the $3.2 billion consensus (-0.14%), and EPS under the $2.06 estimate by about 0.5%. LongHorn Steakhouse led with same-store sales up 6.8% (above the 6.3% estimate). Olive Garden company-owned locations numbered 953 versus an expected 954, and Olive Garden same-store sales rose 1% (vs 1.7% est). Consolidated same-store sales were 3.2% (vs 3.1% est). LongHorn total sales were $860.9 million (+10.9% YoY). Other Business sales reached $705.4 million (+3.6%), Fine Dining $304.2 million (+6.2%), and Olive Garden sales $1.33 billion (below est $1.35B, +2.2% YoY). Shares declined about 2.3% in the past month; Zacks Rank Hold. Mixed results with inline revenue and a slight EPS miss offset by strength in LongHorn and Other Business, while Olive Garden softness weighs on overall performance.
Darden Restaurants posted Q1 results: adjusted EPS $2.05, in line with estimates; revenue $3.2 billion, below the $3.21 billion consensus, up 5.1% year over year. Blended same-restaurant sales rose 3.1% on a fiscal calendar basis and 3.2% on a comparable calendar basis. LongHorn Steakhouse led with 6.2% same-store sales growth; Olive Garden grew 1.1%. The company reaffirmed fiscal 2027 guidance of $11.10-$11.35 per share (midpoint $11.23, slightly below consensus of $11.28). Olive Garden, LongHorn, and Fine Dining generated $1.33B, $860.9M, and $304.2M in sales, respectively. Darden repurchased $222.3M of stock and declared a quarterly dividend of $1.62, payable Nov 2, 2026. It operates 2,218 company-owned restaurants. Shares fell about 5.6% premarket on the revenue miss. Earnings were in line but revenue missed, prompting a near-term stock decline and a full-year outlook modestly below consensus.
Darden Restaurants posted Q3 CY2026 results that met Wall Street revenue expectations, with revenue of $3.2 billion, up 5.1% year over year. GAAP earnings per share were $2.04, about 1.3% below consensus estimates. The company guided full-year GAAP EPS of $11.23 at the midpoint, roughly in line with expectations. Operating margin fell to 10.0% from 11.1% a year earlier, and free cash flow margin slipped to 3.2% from 5.5%. Darden ended the quarter with 2,218 restaurants, up from 2,165, and reported same-store sales growth of 3.1% YoY (versus 4.7% a year ago). Management attributed solid fiscal Q1 performance to each segment delivering positive same-restaurant sales and emphasized brand strength, guest loyalty, and capital deployment for long-term shareholder value. The stock traded lower after results, reflecting the mixed margin dynamics and modest growth outlook. EPS miss and margin decline despite in-line revenue signal mixed near-term profitability with a modest growth outlook.
Darden Restaurants reported fiscal 2027 first-quarter results ended Aug. 30, 2026. Total sales rose 5.1% to $3.20 billion. Blended same-restaurant sales increased 3.1% on a fiscal calendar basis and 3.2% on a comparable calendar basis, led by LongHorn’s 6.2% rise; Olive Garden up 1.1% (fiscal) and Fine Dining 1.6%; Other Business 3.8% (comparable 4.5%). A 53- to 52-week fiscal-year transition is noted, with calendar comparisons provided. Diluted earnings per share from continuing operations were $2.05, up 4.1% on last year's adjusted EPS. The company repurchased about 1.1 million shares for $222.3 million, leaving $1.3 billion under its $1.5 billion buyback program. A quarterly dividend of $1.62 per share was declared, payable Nov. 2, 2026 to holders of record Oct. 9, 2026. Darden reaffirmed its fiscal 2027 outlook (diluted EPS $11.10-$11.35) and will host an investor call. Positive quarterly results with reaffirmed full-year guidance and ongoing buyback/dividend provide a modest, not transformative, positive signal.
23 Sep
Darden Restaurants' August sales momentum strengthened as Bank of America lifted its LongHorn forecast to 6.5% same-store-sales growth for Q1 FY2027 and cut Olive Garden to 1.7%. Card data showed LongHorn accelerating to 13.8% in August (vs. 6.8% in July) and Olive Garden improving to 6.7% (vs. 1.2%), while overall Darden observed sales growth rise to 8.3% from 4.1%. BoA also forecast a 50-basis-point year-on-year gain in restaurant-level margins to 20.8% for Q1 and raised earnings to $2.16 a share with a $276 target and buy rating. August momentum supports a stronger start to Q2, though Thanksgiving calendar shifts are seen as a 100-basis-point headwind for casual dining and a 150-basis-point lift to fine dining. LongHorn outpaced peers Texas Roadhouse and Outback, underscoring continued brand momentum. Near-term momentum and raised guidance indicate meaningful improvement in profitability and investor sentiment.
22 Sep
Darden Restaurants will announce fiscal Q3 results on Thursday. Last quarter, revenue reached $3.72 billion, up 13.7% year over year, with a narrow beat on same-store sales but full-year revenue guidance met. For the upcoming quarter, analysts expect about 5.5% revenue growth, a slowdown from the 10.4% growth the year before. Analysts have broadly kept their estimates over the past 30 days, though Darden has missed Wall Street revenue estimates in multiple periods over the last two years. Being the first major restaurant to report this season, sentiment is softer relative to peers, with Darden down ~5.9% over the past month while the peer group is down ~16%. Near-term expectations and a mixed track record imply a moderate impact on performance and sentiment, not a transformative change.
Texas Roadhouse posted the best quarterly sales in its history, with record average weekly company restaurant sales (~$177,252) and revenue of $1.68 billion, up 11.1% year over year. Comparable restaurant sales rose 6.2%, driven mainly by traffic rather than price increases. Earnings were $122 million, or $1.85 per share, slightly above estimates but down 0.7% from a year ago as margins narrowed due to sharp gains in beef and other commodity costs. Management trimmed the full-year commodity-inflation forecast and kept a modest 1% menu price increase ahead of Q4 to protect traffic. Beef remains the largest input cost, with cattle supply tight amid drought and risks from herd issues like a screwworm scare. The stock fell about 19% since the earnings release; TXRH trades at a rich valuation and faces competition from Darden, Bloomin’ Brands, Brinker International, and others. Beef-cost-driven margin pressure in the casual-dining segment could pressure DRI's margins and valuation.
Jim Cramer said he prefers Brinker International (EAT) to Darden Restaurants (DRI) ahead of Darden’s Sept. 24 earnings, while praising Olive Garden’s business but noting its growth has slowed. Darden posted fiscal 2026 sales of $13.21 billion, up 9.4%, with same-store sales up 4.5% for the year; Olive Garden comps rose 4% but slowed to 2.4% in Q4, while LongHorn grew 9.5% for the year. Guidance calls for fiscal 2027 sales of $13.60–$13.75 billion and diluted EPS of $11.10–$11.35. Brinker reported fiscal 2026 comps up 8.1% (Chili’s +9.2%; Chili’s Q4 comps +5.6%), with 2027 revenue seen at $6.15–$6.27 billion and adjusted EPS of $12.60–$13.40. Brinker's 3-for-Me value and Chili's momentum contrast with Olive Garden’s slower growth. Brinker's higher leverage and concentration on Chili’s raise questions about DRI’s ability to sustain its outlook. Olive Garden’s slowing growth and Brinker's momentum with higher leverage highlight competitive risk to DRI and could temper investor sentiment.
21 Sep
DRI is a large-cap, Orlando-based operator of Olive Garden, LongHorn Steakhouse, The Capital Grille and other brands, with a roughly $24B market cap. In its fiscal 2026 results (reported June 25), Darden posted $13.2B in sales, up 9.4%, with blended comps +4.5% (LongHorn +7.2%, Olive Garden +4%). Adjusted EPS rose 11.4% to $10.64. The company raised its dividend and authorized a $1.5B share-repurchase program. Through recent months, DRI has outperformed the XLY ETF and SBUX, trading above its 50- and 200-day averages for much of the period. It trades about 8.4% below its 52-week high of $229.76 (Aug 13). Analysts average a Moderate Buy with a $233.04 target, implying roughly 10% upside. Robust 2026 results, dividend hike, and a large buyback bolster investor sentiment and potential upside.
Darden Restaurants is preparing for its next earnings with expectations for mid single-digit growth in EPS and revenue from Olive Garden and LongHorn. Delivery complexity and softer guest counts remain risks, but execution across the portfolio is expected to stay resilient. The company raised its dividend by 8% to $1.62 per share and launched a $1.5 billion buyback, signaling confidence in cash generation. Long-term targets call for about $15.4 billion in revenue and $1.5 billion in earnings by 2029, implying roughly 5.3% annual revenue growth. Some analysts forecast higher near-term figures (around $15.8 billion revenue and $1.6 billion earnings), but tighter delivery and digital competition could temper that. A fair value of about $232.96 with ~10% upside frames a constructive yet cautious investment narrative amid traffic headwinds and margin pressure. Dividend hike and buyback bolster near-term sentiment while delivery headwinds and softer guest counts limit upside.
The Cheesecake Factory (CAKE) targets North Italia’s recovery after a 3% Q2 FY2026 comp decline, with annualized unit volumes of $7.9 million and restaurant-level margin at 15.6% vs 18.2% a year earlier. Management is testing a more value-oriented menu and lower-priced pasta options, plus lunch promotions to bolster affordability and perceived value. Expanded local marketing—digital ads, restaurant-week promos, and community events—will roll out in the second half of 2026. The company is applying operational lessons from its broader portfolio to North Italia, including service systems, people practices, technology and supply-chain capabilities, and improved staff retention. Still, recovery is uncertain and traffic may remain volatile until initiatives gain traction. North Italia faces competitive pressure in the full-service dining market, with peers like Brinker’s Chili’s and Darden’s Olive Garden; CAKE expects more affordable offerings and focused marketing to restore traffic growth. CAKE's North Italia push could heighten competition for DRI's Olive Garden, potentially impacting traffic and market positioning.
Darden Restaurants (DRI) is expected to report Q1 earnings of $2.06 per share on about $3.2 billion in revenue, up 4.6% and 5.3% year over year, respectively. The consensus EPS estimate has fallen 0.2% in the last 30 days. Analysts break out projections by segment: Olive Garden sales near $1.35 billion (+3.9%), Other Business about $684.66 million (+0.6%), Fine Dining $302.67 million (+5.6%), LongHorn Steakhouse $859.29 million (+10.7%). Same-restaurant sales for LongHorn (+6.3% YoY) and Olive Garden (+1.7%), with consolidated at +3.1%. Company-owned totals for Olive Garden around 954 units (vs 933 prior year); LongHorn 624 (vs 595); Total company-owned 2,214 (vs 2,165). Ruth's Chris at 83 units. Shares fell 5.6% in the past month vs. the S&P 500's 1.3% decline; Zacks ranks DRI Hold. Modest downward estimate revisions and granular metric expectations could influence short-term sentiment without signaling a major strategic change.
18 Sep
Darden Restaurants prepares to report Q1 results with focus on comparable sales, margins, and guidance. Quarterly earnings releases frequently drive major stock moves and shift investor views on performance.
Darden Restaurants, Inc. (DRI) shows signs of potential stock gains amid ongoing market and operational factors affecting the restaurant sector. Developments may moderately influence DRI financial performance and investor sentiment without fundamentally shifting long-term trajectory.
17 Sep
Darden Restaurants (DRI) announced developments that give investors new factors to weigh regarding strategy and outlook. Developments may moderately affect operations and sentiment but are unlikely to fundamentally shift long-term trajectory.
15 Sep
Oppenheimer sees Darden Restaurants earnings trajectory improving due to accelerating Olive Garden trends. Analyst outlook on earnings gains and Olive Garden acceleration points to moderate positive effects on Darden performance.