Darden Restaurants, Inc. (NYSE: DRI) is all set to report its first-quarter results next week, amid expectations for an increase in sales and profit. The positive trends helping the business this year include resilient performance by its core casual-dining brands and recent moderation in input prices. However, changing consumer preferences amid economic uncertainties and reduced discretionary spending are expected to weigh on sales performance.
The Orlando, Florida-based company, which owns popular restaurant chains Olive Garden and LongHorn Steakhouse, will report its first-quarter earnings on Thursday, September 18, at 7:00 am ET. It is estimated that Darden had a positive start to fiscal 2026 — analysts forecast a 10.10% year-over-year increase in Q1 revenue to $3.04 billion. The consensus earnings estimate for the August quarter is $2.0 per share, which represents an improvement from the prior-year quarter when the company earned $1.75 per share.
Following a pullback from its June highs, Darden’s stock has stabilized within a narrow range. Over the past 12 months, DRI has delivered a total return of 36%, nearly double that of the S&P 500, reinforcing its position as a consistent outperformer in the restaurant sector. Recently, the company raised its regular quarterly dividend by 7% to $1.5 per share, and currently offers a healthy yield of 2.8%.
Strong Q4
In the final three months of fiscal 2024, Darden’s sales increased 10.6% year-over-year to $3.3 billion, with blended same-restaurant sales growing 4.6%. Net income was $303.8 million or $2.58 per share in the fourth quarter, compared to $308.1 million or $2.57 per share last year. Both earnings and revenues surpassed analysts’ estimates in Q4, after missing in the prior quarter.
From Darden Restaurants’ Q4 2025 Earnings Call:
“Strategic planning is one of our competitive advantages, and at the Darden level, it ensures that we have the right portfolio of brands. We align strategies and coordinate operations to maximize our portfolio’s value, and we capture the available synergies across all our brands. For our brands, our strategic planning process allows us to determine the strategic role in a portfolio, identify their distinct advantages and cultivate differentiated positioning, develop a deep understanding of their guests and the competitive landscape, and ensure they adhere to their strategy so they can compete effectively and grow share.”
Guidance
As per the most recent guidance, the management expects full-year 2026 sales to grow between 7% and 8%, and same-restaurant sales to be up 2.0-3.5% YoY. Earnings per share from continuing operations are expected to be in the $10.50-10.70 range in FY26. The company is actively expanding its restaurant network — opened 19 restaurants in the fourth quarter. For fiscal 2026, it targets to open 60-65 new restaurants.
DRI traded slightly higher in the early hours of Thursday, after opening the session $211.52. The average stock price for the last 52 weeks is $191.86.
