Darden Restaurants Shares Fall as Q1 Revenue Misses Analyst Estimate

Darden Restaurants Inc. (NYSE:DRI) shares fell 5.6% in premarket trading on Thursday after the restaurant operator reported first-quarter revenue below analyst expectations, while adjusted earnings per share matched the consensus estimate.

For the quarter ended August 30, 2026, Darden reported adjusted earnings per share of $2.05, in line with the analyst estimate of $2.05.

Revenue increased 5.1% year-on-year to $3.2 billion from $3.04 billion but was below the consensus estimate of $3.21 billion.

Blended same-restaurant sales increased 3.1% on a fiscal-calendar basis and 3.2% on a comparable-calendar basis.

LongHorn Steakhouse Same-Restaurant Sales Rise 6.2%

LongHorn Steakhouse recorded same-restaurant sales growth of 6.2% during the quarter, while Olive Garden, Darden’s largest brand, reported an increase of 1.1%.

“The first quarter was a solid start to our fiscal year with each of our segments delivering positive same-restaurant sales,” said Darden President and CEO Rick Cardenas. “The performance across our portfolio reinforces the importance of having distinctive brands, each with a clear strategy, supported by Darden’s scale and other competitive advantages.”

Olive Garden generated quarterly sales of $1.33 billion and segment profit of $270.8 million.

LongHorn Steakhouse reported sales of $860.9 million, compared with $776.4 million in the same period a year earlier, while segment profit was $154.6 million.

Darden’s Fine Dining segment recorded sales of $304.2 million and segment profit of $39.6 million.

Darden Reaffirms Fiscal 2027 Guidance

Darden reaffirmed its outlook for fiscal 2027, forecasting earnings per share of between $11.10 and $11.35.

The midpoint of the company’s guidance range is approximately $11.23, compared with the analyst consensus estimate of $11.28.

The guidance represents management’s current expectations for fiscal 2027 rather than achieved financial results.

Darden Repurchases $222.3 Million of Shares

During the first quarter, Darden repurchased $222.3 million of its common stock.

The company also declared a quarterly dividend of $1.62 per share, payable on November 2, 2026.

At the end of the quarter, Darden operated 2,218 company-owned restaurants across its portfolio of brands.

Darden Restaurants stock price