Darden Restaurants raises annual sales forecast as affordable options drive demand

Darden Restaurants

19/03/2026 12:02

March 19 (Reuters) - Olive Garden parent Darden Restaurants DRI.N raised its annual sales forecast on Thursday, betting on its value-for-money menu options and marketing efforts to drive demand across its casual dining chains.

Darden, like many other restaurant chains, has been rolling out value-focused meal offerings along with initiatives such as partnering with Uber Direct for home delivery to attract budget-conscious consumers amid a choppy economic backdrop.

Peer Cava CAVA.N raised its annual same-store sales above estimates last month, signaling resilient demand for its healthy Mediterranean bowls.

Darden expects fiscal year 2026 same-restaurant sales to grow 4.5%, compared with its prior forecast of 3.5% to 4.3%.

The company also narrowed its annual earnings forecast to between $10.57 and $10.67 per share, the midpoint of which is above estimates of $10.57.

Sales at LongHorn Steakhouse, a dining brand owned by Darden, rose 7.2% from a year ago in the third quarter ended February 22, compared with a 2.6% growth a year earlier.

Sales at Olive Garden grew 3.2% during the quarter, compared with 0.6% in the same quarter a year ago.

Darden's third-quarter sales of $3.34 billion surpassed analysts' average estimate of $3.33 billion, according to data compiled by LSEG.

However, high prices of beef, a key ingredient, have been squeezing margins for restaurant chains such as Darden.

Darden said in December it had been absorbing tariff-related costs rather than passing them on, as an uncertain economy and labor market left diners sensitive to price increases.

Darden's shares were down nearly 3% in premarket trading on Thursday, after the company's third-quarter profit of $2.68 per share missed estimates of $2.94.

 (Reporting by Koyena Das in Bengaluru; Editing by Shreya Biswas)

 ((koyena.das@thomsonreuters.com))