Olive Garden owner Darden's Q1 revenue rises, plans new restaurant openings

Darden Restaurants

18/09/2025 12:13

Overview

Darden fiscal Q1 2026 revenue rises 10.4% yr/yr

Adjusted EPS for fiscal Q1 increases 12.6% but misses analyst expectations, per LSEG data

Same-restaurant sales grow 4.7%, driven by Olive Garden and LongHorn Steakhouse

Outlook

Company expects fiscal 2026 sales growth of 7.5% to 8.5%

Darden forecasts same-restaurant sales growth of 2.5% to 3.5%

Company plans 65 new restaurant openings in fiscal 2026

Darden projects fiscal 2026 EPS of $10.50 to $10.70

Result Drivers

SALES GROWTH - Driven by 4.7% increase in same-restaurant sales and acquisition of 103 Chuys Tex Mex restaurants

OLIVE GARDEN & LONGHORN - Olive Garden and LongHorn Steakhouse led same-restaurant sales growth with 5.9% and 5.5% increases respectively

STRATEGIC FOCUS - CEO attributes strong performance to strategic focus and leveraging competitive advantages

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$3.04 bln
$3.04 bln (24 Analysts)
Q1 Net Income
$257.80 mln
Q1 Adjusted EPS continuing operations
Miss
$1.97
$2 (27 Analysts)
Q1 EPS continuing operations
$2.19
Q1 Same-restaurant sales growth
4.7%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy"

Wall Street's median 12-month price target for Darden Restaurants Inc is $235.00, about 11.2% above its September 17 closing price of $208.79

Press Release: ID:nPn165Tcfa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)