Darden Restaurants (NYSE:DRI) Announces Earnings Results, Hits Estimates

Posted by Francis Steltz on Sep 25th, 2026

Darden Restaurants (NYSE:DRI – Get Free Report) announced its quarterly earnings results on Thursday. The restaurant operator reported $2.05 earnings per share for the quarter, meeting analysts’ consensus estimates of $2.05, Zacks reports. Darden Restaurants had a net margin of 9.13% and a return on equity of 57.44%. The business had revenue of $3.20 billion during the quarter, compared to analysts’ expectations of $3.21 billion. During the same period last year, the business earned $1.97 earnings per share. The business’s revenue for the quarter was up 5.1% on a year-over-year basis. Darden Restaurants updated its FY 2027 guidance to 11.100-11.350 EPS.

Here are the key takeaways from Darden Restaurants’ conference call:

Solid first-quarter performance: Darden generated $3.2 billion in sales, up 5.1%, while comparable-calendar same-restaurant sales rose 3.2% and adjusted EPS increased 4.1% to $2.05. Management reaffirmed its fiscal 2027 EPS outlook of $11.10–$11.35.
LongHorn and Yard House led growth: LongHorn Steakhouse posted 6.8% same-restaurant sales growth and its 22nd consecutive positive-comp quarter, while Yard House grew 10%. Darden plans 13 Yard House openings this year and expects higher-single-digit annual unit growth for the brand over time.
Olive Garden trends improved but remain an opportunity: The brand’s comparable sales increased 1%, pressured by World Cup comparisons, lettuce concerns, lighter-portion mix, and lapping prior promotions. Management said traffic improved through the quarter and early results from the Never-Ending Pasta Bowl were better than expected, while renewed lunch marketing and new value platforms are intended to drive growth.
Margins faced cost and investment pressures: Consolidated restaurant-level EBITDA margin was flat at 18.8%, with food and beverage costs up 30 basis points and additional investment at Olive Garden. Bahama Breeze closures also weighed on the other-business segment, whose margin declined 30 basis points to 15.8%.
Costs and calendar timing remain watch items: Darden expects approximately 3% commodity inflation for the year, including low-single-digit beef inflation, and noted potential fuel-surcharge exposure of roughly 10–15 basis points under elevated diesel prices. Thanksgiving’s shift into the fiscal second quarter is expected to reduce Q2 sales by about 1%, with an offsetting benefit in Q3.

Darden Restaurants Price Performance

Shares of NYSE DRI opened at $206.83 on Friday. Darden Restaurants has a one year low of $169.00 and a one year high of $229.76. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.21 and a current ratio of 0.31. The firm has a market cap of $23.60 billion, a PE ratio of 19.93, a PEG ratio of 2.01 and a beta of 0.60. The firm has a fifty day moving average of $212.01 and a 200 day moving average of $204.76.

Darden Restaurants Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be issued a $1.62 dividend. This represents a $6.48 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Friday, October 9th. Darden Restaurants’s dividend payout ratio is presently 62.43%.

More Darden Restaurants News

Here are the key news stories impacting Darden Restaurants this week:

Positive Sentiment: Darden reported fiscal Q1 2027 revenue of approximately $3.20 billion, up 5.1% year over year, while adjusted earnings of $2.05 per share were broadly in line with expectations. Same-restaurant sales rose 3.1% across the portfolio. Darden fiscal 2027 first-quarter results
Positive Sentiment: Management reaffirmed fiscal 2027 adjusted EPS guidance of $11.10 to $11.35, close to the analyst consensus of $11.28, reducing the risk of a broader outlook reset. Darden also said Yard House plans to open 13 locations. Darden reaffirms fiscal 2027 guidance
Positive Sentiment: The board declared a quarterly dividend of $1.62 per share, or $6.48 annualized, representing a yield of about 3.1%. Shareholders also backed the existing board and governance structure at the annual meeting. Darden shareholder meeting results
Neutral Sentiment: LongHorn Steakhouse remained a relative bright spot, posting 6.2% same-store sales growth, while management continues to benefit from sales growth across its restaurant segments.
Negative Sentiment: Revenue fell short of the roughly $3.21 billion consensus estimate, and higher food and labor costs pressured profits. Reported net income declined to about $233 million from $258 million a year earlier. Darden profit declines on higher expenses
Negative Sentiment: Olive Garden’s same-store sales growth slowed to 1.1%, raising concerns about consumer traffic and the durability of growth at Darden’s flagship brand. The combination of the revenue miss, weaker Olive Garden momentum and margin pressure is driving the negative investor reaction despite the reaffirmed outlook. Darden stock falls as Olive Garden growth slows

Insiders Place Their Bets

In other Darden Restaurants news, SVP Susan M. Connelly sold 2,226 shares of the business’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $208.17, for a total transaction of $463,386.42. Following the completion of the sale, the senior vice president owned 4,165 shares of the company’s stock, valued at approximately $867,028.05. The trade was a 34.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider John W. Wilkerson sold 8,864 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $208.33, for a total transaction of $1,846,637.12. Following the sale, the insider owned 18,794 shares of the company’s stock, valued at approximately $3,915,354.02. The trade was a 32.05% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 70,185 shares of company stock worth $14,636,984. 0.67% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several analysts have issued reports on DRI shares. BMO Capital Markets restated a “market perform” rating on shares of Darden Restaurants in a report on Monday, June 22nd. Deutsche Bank Aktiengesellschaft raised their price objective on Darden Restaurants from $230.00 to $236.00 and gave the stock a “buy” rating in a research note on Friday, June 26th. Oppenheimer lifted their price target on shares of Darden Restaurants from $235.00 to $245.00 and gave the company an “outperform” rating in a research report on Tuesday, September 15th. UBS Group reissued a “buy” rating on shares of Darden Restaurants in a research report on Friday, September 11th. Finally, Morgan Stanley upped their target price on shares of Darden Restaurants from $236.00 to $255.00 and gave the stock an “overweight” rating in a research note on Monday, September 14th. Eighteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat.com, Darden Restaurants presently has a consensus rating of “Moderate Buy” and a consensus price target of $232.09.

View Our Latest Report on DRI

About Darden Restaurants

(Get Free Report)

Darden Restaurants, Inc (NYSE: DRI) is a full-service restaurant company headquartered in Orlando, Florida. It operates and franchises a portfolio of dining brands serving a range of cuisines, price points and occasions, with restaurants primarily located in the United States and select international markets.

Its restaurant portfolio includes Olive Garden, an Italian-American dining chain; LongHorn Steakhouse; Cheddar’s Scratch Kitchen; Yard House; The Capital Grille; Seasons 52; Bahama Breeze; Eddie V’s; Ruth’s Chris Steak House; and Chuy’s.