Olive Garden owner Darden Q1 sales edge below estimates

Darden Restaurants

24/09/2026 12:11

Overview
U.S. full-service restaurant operator's fiscal Q1 sales rose 5.1% yr/yr, slightly missing analyst expectations
Adjusted EPS from continuing operations for fiscal Q1 missed analyst expectations
Company repurchased $222.3 mln of its common stock during the quarter

Outlook
Darden reaffirms fiscal 2027 diluted net EPS guidance of $11.10 to $11.35

Result Drivers
SEGMENT SALES GROWTH - Co said all segments delivered positive same-restaurant sales, led by LongHorn Steakhouse
BRAND PORTFOLIO - CEO attributed performance to having distinctive brands with clear strategies supported by Darden's scale

Company press release: ID:nPn2Nlgd8a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Slight Miss*
$3.20 bln
$3.21 bln (23 Analysts)
Q1 Net Income
 
$233.40 mln
 
Q1 Adjusted EPS continuing operations
Miss
$2.05
$2.06 (26 Analysts)
Q1 EPS continuing operations
 
$2.05
 
Q1 Same-restaurant sales growth
 
3.10%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 11 "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 10% above its September 23 closing price of $213.69
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)