Darden Restaurants, Inc. owns and operates full-service restaurants in the United States and Canada through its subsidiaries. Its brands include Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Chuy's, Yard House, Ruth's Chris Steak House, The Capital Grille, Seasons 52, Eddie V's Prime Seafood, Bahama Breeze, The Capital Burger, Darden, and Darden Restaurants. The company was founded in 1938 and is based in Orlando, Florida.
Darden's weak 2027 outlook and Olive Garden miss overshadow Q4 beat
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Weak fiscal 2027 guidance Darden's forecast for next year's sales and profit came in below what analysts expected, even though the latest quarter beat estimates. When a company says future growth will be slower than hoped, investors often sell first and ask questions later, pushing the stock down.
This is the main new reason the stock is moving, as future expectations drive the price more than past results.
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Olive Garden sales disappoint Olive Garden, Darden's biggest brand, posted same-store sales growth of 2.4%, missing the 3.2% analysts expected. That raises questions about whether diners are pulling back, which could pressure future profits and the stock price.
Olive Garden is the largest part of Darden, so its sales miss directly affects investor confidence.
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Dividend hike and $1.5B buyback Darden raised its quarterly dividend by 8% and announced a new $1.5 billion share buyback. Returning more cash to shareholders can support the stock price by making the shares more attractive and reducing the number of shares outstanding.
These capital returns are a new positive signal that can offset some of the negative guidance.
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Lower oil prices ease consumer pressure Oil prices fell below $70 a barrel, acting like a tax cut for consumers and leaving them more money to spend on dining out. This macro tailwind lifted restaurant stocks broadly, including Darden, though it is a sector-wide boost rather than company-specific.
This is a new external factor that supports demand for Darden and the restaurant sector.
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Darden's Q1 Sales Miss and Weak Olive Garden Growth Pressure Shares
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Q1 Revenue Misses Estimates Darden's fiscal Q1 revenue of $3.20 billion fell short of the $3.21 billion expected, and EPS of $2.05 missed by a penny. The top-line miss signals softer demand, which pushes the stock down as investors worry about growth.
This is the core new financial result that directly caused the stock to drop.
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Olive Garden Sales Growth Slows to 1.1% Olive Garden, Darden's biggest chain, grew sales just 1.1% as high gas prices ate into household spending. This weak performance raises fears that consumers are cutting back on dining out, weighing on the stock.
It shows a key driver of the revenue miss and points to ongoing consumer pressure.
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FY2027 EPS Guidance Below Analyst Forecasts Darden reaffirmed its full-year EPS outlook of $11.10 to $11.35, but that range came in below what analysts were expecting. A lower-than-expected profit forecast makes investors question future growth, pushing the stock down.
Guidance is a key forward-looking metric that influences investor expectations and stock price.
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Yard House Expansion and Shareholder Returns Darden plans 13 new Yard House openings and returned $406 million to shareholders via dividends and buybacks. These moves show confidence in growth and support the stock, though they were not enough to offset the sales miss.
It highlights a positive counterweight to the negative earnings news.
Q3 2026
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Darden's Q1 Sales Miss and Weak Olive Garden Growth Pressure Shares
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Q1 Revenue Misses Estimates Darden's fiscal Q1 revenue of $3.20 billion fell short of the $3.21 billion expected, and EPS of $2.05 missed by a penny. The top-line miss signals softer demand, which pushes the stock down as investors worry about growth.
This is the core new financial result that directly caused the stock to drop.
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Olive Garden Sales Growth Slows to 1.1% Olive Garden, Darden's biggest chain, grew sales just 1.1% as high gas prices ate into household spending. This weak performance raises fears that consumers are cutting back on dining out, weighing on the stock.
It shows a key driver of the revenue miss and points to ongoing consumer pressure.
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FY2027 EPS Guidance Below Analyst Forecasts Darden reaffirmed its full-year EPS outlook of $11.10 to $11.35, but that range came in below what analysts were expecting. A lower-than-expected profit forecast makes investors question future growth, pushing the stock down.
Guidance is a key forward-looking metric that influences investor expectations and stock price.
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Yard House Expansion and Shareholder Returns Darden plans 13 new Yard House openings and returned $406 million to shareholders via dividends and buybacks. These moves show confidence in growth and support the stock, though they were not enough to offset the sales miss.
It highlights a positive counterweight to the negative earnings news.
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Bond Yields Rise as Inflation Squeezes Economy, Fed Tightens
The relentless rise in bond yields is being driven not by warnings about the nation's debt but by an economy weakening under the tightening grip of inflation just as the Federal Reserve makes borrowing costlier for businesses and consumers. BlackRock chief investment officer of global fixed income Rick Rieder called the move not a crisis but an eye-opener, and noted it is something you have got to think about. Payroll services company Paychex said this week that we are in a low-hire, low-fire environment, while General Mills warned of more quarters of pressured margins from a big pickup in inflation in wheat, diesel, and packaging. Cracker Barrel called out a 6.1% traffic drop in its most recent quarter, and Darden said sales at its Olive Garden chain grew just 1.1% in the quarter, a read that much higher gas prices are swallowing up the disposable income of many households. The commentary comes as Fed hawks like New York Fed president John Williams continue to signal rate hikes.
CBRL · Demand · Negative Cracker Barrel called out a 6.1% traffic drop in its most recent quarter, signaling weaker customer demand.
DRI · Demand · Negative Darden said Olive Garden sales grew just 1.1% as higher gas prices swallowed household disposable income.
GIS · Supply · Negative General Mills warned of more quarters of pressured margins from a big pickup in inflation in wheat, diesel, and packaging inputs.
PAYX · · Neutral Paychex said we are in a low-hire, low-fire environment, a labor-market read with no clear directional impact on the company.
Five of Six S&P 500 Firms Beat EPS Estimates as Costco and Cintas Lead Results
Five of the six S&P 500 companies reporting earnings this week topped consensus EPS estimates, with one matching expectations and none missing, while five of the six also expanded profits year over year. Costco Wholesale reported fiscal fourth-quarter net sales up 12% to $95.72 billion, beating estimates by $830 million, with diluted EPS up 15% to $6.57 and global adjusted comparable sales up 6.7%. Cintas posted fiscal first-quarter revenue up 11% year over year to $3.01 billion and adjusted EPS of $1.39, and raised its fiscal 2027 revenue guidance to $12.15 billion to $12.27 billion and adjusted EPS guidance to $5.45 to $5.54. AutoZone reported fiscal fourth-quarter revenue up 5.6% to $6.59 billion with EPS of $56.05, General Mills posted revenue of $4.4 billion and adjusted EPS of $0.75 with full-year EPS guidance of $3.00 to $3.20, and Paychex reported revenue up 6% to $1.63 billion with adjusted EPS of $1.34. Darden Restaurants reported first-quarter revenue of $3.2 billion, missing estimates by $10 million, with fiscal 2027 EPS guidance of $11.10 to $11.35 below the analyst forecast.
COST · Capital · Positive Costco's fiscal Q4 net sales rose 12% to $95.72 billion, beating estimates, with diluted EPS up 15% to $6.57.
CTAS · Capital · Positive Cintas posted fiscal Q1 revenue up 11% to $3.01 billion and adjusted EPS of $1.39, and raised its fiscal 2027 guidance.
DRI · Capital · Negative Darden's Q1 revenue of $3.2 billion missed estimates by $10 million and its fiscal 2027 EPS guidance came in below analyst forecasts.
PAYX · Capital · Positive Paychex reported revenue up 6% to $1.63 billion with adjusted EPS of $1.34, beating estimates.
AZO · Capital · Positive AutoZone reported fiscal Q4 revenue up 5.6% to $6.59 billion with EPS of $56.05, a positive earnings result.
GIS · Capital · Positive General Mills posted revenue of $4.4 billion and adjusted EPS of $0.75 with full-year EPS guidance of $3.00 to $3.20.
BlackBerry Beats Estimates, MGM Plunges on Withdrawn Bid, Starboard Takes Knife River Stake
BlackBerry Limited reported second-quarter fiscal 2027 earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.04 per share, sending its shares up 4.2%. Darden Restaurants posted first-quarter fiscal 2027 earnings of $2.05 per share, missing the Zacks Consensus Estimate of $2.06 per share, and its shares fell 3%. MGM Resorts International shares plummeted 11% after Barry Diller's People Incorporated withdrew its takeover bid for the casino chain. Knife River Corporation shares gained 1.9% on reports that activist investor Starboard Value had acquired a significant equity stake in the company.
Darden reported third-quarter revenue of $3.2 billion, up 5.1% year on year and in line with analyst estimates of $3.21 billion, while GAAP earnings of $2.04 per share came in 1.3% below the $2.07 consensus. The company guided to full-year GAAP EPS of $11.23 at the midpoint, roughly in line with expectations, as operating margin fell to 10% from 11.1% a year earlier. Same-store sales rose 3.1% year on year, down from 4.7% in the prior-year quarter, with CEO Ricardo Cardenas saying same-restaurant guest counts were hit by 150 to 200 basis points from the World Cup and heightened consumer concerns about lettuce, particularly at Olive Garden. Yard House posted 10% same-restaurant sales growth and reached $1 billion in trailing 52-week sales for the first time, while Darden ended the quarter with 2,218 locations, up from 2,165 a year earlier. CFO Rajesh Vennam said pricing was 3.7% for the quarter and is expected to moderate through the year as the company expands Yard House with a new prototype and tests new lunch platforms.
DRI · Capital · Negative Q3 GAAP EPS of $2.04 missed the $2.07 consensus and operating margin fell to 10% from 11.1% a year earlier.
DRI · Demand · Negative Same-store sales growth slowed to 3.1% from 4.7%, with guest counts hit by the World Cup and consumer lettuce concerns at Olive Garden.
Darden Falls on 1Q Profit Slip; Stitch Fix Tumbles on Weak 2027 Ebitda Forecast
Darden Restaurants shares fell after the company reported first quarter results showing higher sales but lower profits and increased expenses. MGM Resorts shares declined after Barry Diller's People Inc. dropped its plans to acquire the rest of the casino giant. Stitch Fix shares dropped after the online personal styling platform forecast full-year 2027 Ebitda far below what analysts expected, and reported a loss per share from continuing operations of 2.0c for the fourth quarter.
Trump and Xi Meet as Oil Climbs and Bond Yields Hit Two-Decade Highs
President Trump welcomed China's President Xi to the White House today for a summit expected to cover the 18-month tariff war, oil supply security amid the seven-month Iran war, and the promise and threat of AI. Oil prices are climbing again, with WTI at $93 per barrel and Brent crude at $105 per barrel, levels last seen in the early weeks of U.S. and Israeli bomb strikes on Iran in mid-March. Bond yields remain at their highest level in two decades, with the 10-year at +5.12% and the 2-year around +4.86%, a strain the Fed will be forced to weigh at its October FOMC meeting. Weekly Jobless Claims stayed near six-decade lows at +197K initial claims, with continuing claims dropping to 1.719 million. Ahead of the open, Darden Restaurants reported fiscal Q1 earnings of $2.05 per share, missing by a penny, on $3.2 billion in revenues, short of the Zacks consensus by -0.14%, with comps up +3.1% year over year; shares fell -3% premarket. After today's close, Costco is expected to report fiscal Q4 earnings of $6.48 per share on $94.82 billion in revenues, both up over +10% year over year.
DRI · Capital · Negative Darden reported fiscal Q1 EPS of $2.05, missing by a penny, and revenue of $3.2 billion below consensus, sending shares down 3% premarket.
COST · Capital · Neutral Costco is only mentioned as expected to report fiscal Q4 earnings after today's close, with no actual results yet.
MGM Shares Tumble 9% as Diller's People Withdraws Buyout Proposal
Barry Diller's People withdrew its proposal to buy MGM Resorts International, sending the casino giant's shares down more than 9% in premarket trading. Diller said, "We didn't feel the mix was coming together in the way we had hoped," but expressed his faith in the company, in which he still holds 66.8 million shares. Darden Restaurants shed 6.6% after its fiscal first-quarter earnings of $2.05 per share came in line with estimates, while revenue of $3.20 billion fell just shy of the $3.21 billion expected from analysts polled by FactSet; the company also reaffirmed its full-year guidance. BlackBerry added 2% after reporting adjusted earnings of 7 cents per share, topping the 4 cents expected, on revenue of $163.3 million versus the $142.5 million consensus estimate. Meta slipped 2% following its nearly 12% move higher so far this week on optimism around its Muse AI agent, after CEO Mark Zuckerberg introduced the company's $1,299 Meta VR Glasses and Muse Charm, its handheld device that works with Muse, late Wednesday. Knife River rose 5% following a Wall Street Journal report that activist investor Starboard Value has acquired a substantial equity interest in the construction materials and contracting services company, reportedly pushing for improved margins or a potential sale, while Everpure moved 6.7% higher on positive takeaways from its financial analyst meeting and preliminary 2028 guidance of $7 billion to $7.3 billion in revenue, topping the $6.19 billion anticipated from analysts polled by FactSet.
MGM · Capital · Negative Barry Diller's People withdrew its buyout proposal for MGM Resorts, sending shares down more than 9%.
BB · Capital · Positive BlackBerry reported adjusted EPS of 7 cents and revenue of $163.3M, both topping consensus estimates.
DRI · Capital · Negative Darden's fiscal Q1 revenue of $3.20B fell just shy of the $3.21B expected, though EPS matched estimates.
KNF · Capital · Positive Activist investor Starboard Value acquired a substantial equity interest in Knife River, pushing for improved margins or a potential sale.
P · Capital · Positive Everpure rose 6.7% on positive takeaways from its analyst meeting and preliminary 2028 revenue guidance of $7-7.3B, topping the $6.19B consensus.
META · Capital · Negative Meta slipped 2% after its nearly 12% weekly gain tied to optimism around its Muse AI agent and new VR/handheld devices.
Darden Restaurants to Report Q1 Earnings September 24
Darden Restaurants is scheduled to announce its Q1 earnings results on Thursday, September 24rd, before market open. The consensus EPS estimate is $2.05, up 4.1% year over year, and the consensus revenue estimate is $3.21B, up 7.0% year over year. Over the last 2 years, Darden has beaten EPS estimates 63% of the time and revenue estimates 50% of the time. Over the last 3 months, EPS estimates have seen 3 upward revisions and 19 downward, while revenue estimates have seen 11 upward revisions and 9 downward.
DRI · Capital · Neutral Darden is the subject, but the article only previews its Q1 earnings date and consensus estimates with no actual result or new development.
Darden Restaurants Expected to Post Q1 Earnings of $2.06 Per Share
Darden Restaurants is expected to report quarterly earnings of $2.06 per share, up 4.6% from a year ago, on revenues of $3.2 billion, a 5.3% year-over-year increase. The consensus EPS estimate has been revised down 0.2% over the past 30 days. Among the company's segments, analysts forecast Olive Garden sales of $1.35 billion, up 3.9%, LongHorn Steakhouse sales of $859.29 million, up 10.7%, Fine Dining sales of $302.67 million, up 5.6%, and Other Business sales of $684.66 million, up 0.6%. Same-restaurant sales are projected to rise 6.3% at LongHorn Steakhouse, 1.7% at Olive Garden, 2.7% for Other Business, and 3.1% on a consolidated basis. Analysts expect total company-owned restaurants of 2,214, including 954 Olive Garden locations, 624 LongHorn Steakhouse locations, and 83 Ruth's Chris Steak House locations. Darden shares have returned -5.6% over the past month, versus a -1.3% change for the Zacks S&P 500 composite, and carry a Zacks Rank #3 (Hold).
DRI · Capital · Neutral Darden is the subject; article previews Q1 earnings of $2.06/share with revenue growth but a slightly lowered consensus estimate, a mixed earnings-preview signal.
Trump to Host Xi for State Dinner With AI Titans as Meta Connect Kicks Off
President Trump will host Chinese leader Xi Jinping this week for their second meeting of 2026, with a state dinner on Thursday set to include OpenAI's Sam Altman and Nvidia's Jensen Huang among confirmed AI attendees. Markets are watching for a continuation of the two countries' trade truce ahead of its November expiration, though touchy subjects like Taiwan and the war with Iran could complicate talks. Meta kicks off its Connect conference on Wednesday, where it is expected to unveil a new version of its glasses, fresh off Snap's foray into the space, and Reuters reports the new wearable may be camera-free. Qualcomm's Snapdragon Summit begins Tuesday in Hawaii, putting the infrastructure side of the AI supply chain in focus. On the earnings front, Costco Wholesale Corporation and Darden Restaurants report Thursday, while KB Home reports Tuesday as mortgage rates surge again. Wall Street will also parse a busy FedSpeak schedule, with New York Fed president John Williams the highlight, alongside Barr, Jefferson, Goolsbee, Barkin, Paulson, and Hammack.
Artificial Intelligence › AI Compute & Accelerator Silicon Geopolitics
META · Technology · Positive Meta kicks off Connect and is expected to unveil a new version of its glasses, possibly camera-free.
KBH · Monetary · Negative KB Home reports Tuesday as mortgage rates surge again, pressuring housing demand.
NVDA · Geopolitics · Neutral Nvidia's Jensen Huang is a confirmed AI attendee at the Trump-Xi state dinner amid trade-truce talks.
SNAP · Competition · Neutral Meta's expected new glasses come 'fresh off Snap's foray into the space,' implying competitive pressure on Snap's AR wearable efforts.
COST · Capital · Neutral Costco is only listed as reporting earnings Thursday, with no details given.
DRI · Capital · Neutral Darden is only listed as reporting earnings Thursday, with no details given.
Darden Board Urges Vote Against Stricter Director Review Proposal
Darden Restaurants is urging shareholders to vote against an Accountability Board proposal that would require formal board reviews and public disclosures whenever a director receives under 80% support in an uncontested election at its September 23 annual meeting. The company reported fiscal 2026 sales of US$13,210.9 million and net income of about US$1,206.7 million in June 2026, with FY2027 guidance assuming continued same restaurant sales growth. The governance dispute is seen as a reputational and oversight issue rather than a direct threat to near term sales or margins, though some analysts remain cautious with revenue projections of about US$14.9 billion and earnings of about US$1.4 billion by 2029.
Six Darden Restaurants executives, including the CEO, CFO, two brand presidents, and two staff chiefs, reported stock sales within about a week, according to SEC filings. Chief Communications and Public Affairs Officer Susan M. Connelly sold 2,226 shares on July 29 for approximately $463,386, reducing her direct holdings by 35% to 4,165 shares, though she retains nearly 3,000 derivative securities. The sales cluster around a period when the stock sits near recent highs, following a record year with over $13 billion in annual sales and an 11.4% increase in adjusted earnings. Analysts view the transactions as natural profit-taking rather than a collective negative signal on the company, given the strong performance and recent share price appreciation.
Darden CPO Sarah King Sells 85% of Direct Shares, Retains 742
Darden Restaurants Chief People Officer Sarah H. King sold 4,373 shares on July 29, reducing her direct common stock holdings by 85% to just 742 shares. The transaction was valued at $920,200 based on a weighted average sale price of $210.42, slightly below the market close of $212.23. King retains additional derivative securities, including restricted stock units and stock options, maintaining exposure to the company's equity performance. The sale comes as Darden, with a market capitalization of $24.3 billion, reported trailing 12-month revenue of $13.2 billion and net income of $1.2 billion, but issued a cautious forward outlook that disappointed analysts.
Darden CFO Rajesh Vennam sold $1.8 million in stock, cutting direct holdings by half
Darden Restaurants CFO Rajesh Vennam sold 8,478 shares for $1.8 million, reducing his direct common stock position from 17,047 to 8,569 shares. The sale occurred at a weighted average price of $210.00, one day after the CEO also sold shares, following a nearly 10% stock bump. Darden recently posted its first $13 billion revenue year with 11.4% adjusted earnings growth, but issued fiscal-year earnings guidance of $11.10 to $11.35 per share, below analyst expectations.
Darden CEO Exercises Options at $124, Sells Shares for $8.2 Million
Darden Restaurants CEO Ricardo Cardenas sold 39,134 shares for $8.2 million after exercising options struck at $124.24. The transaction, disclosed in an SEC filing, left him with 86,145 directly held shares. Darden recently crossed $13 billion in annual sales and lifted adjusted earnings 11.4% to $10.64 a share, though growth was uneven, with LongHorn Steakhouse same-store sales up 9.5% while Olive Garden rose just 2.4%. Beef inflation remains a pressure point for the steakhouse brand.
Darden Restaurants Tests Smaller Store Prototypes as Valuation Debate Continues
Darden Restaurants is testing new smaller prototypes for brands like Yard House and Cheddar's Scratch Kitchen, aiming to lower construction costs and speed up new restaurant openings. The most widely followed narrative currently places Darden's fair value at about $228 per share, above the recent close near $196, framing the stock as undervalued. The stock is up about 1% over the past day but down around 8% over the past month, with a 1-year total shareholder return slightly below flat. Longer-term returns remain solidly positive, with 3-year and 5-year total shareholder returns holding up better than recent moves. The narrative leans on steady revenue expansion, firmer margins, and a richer earnings multiple, though assumptions could be tested if casual dining guest counts weaken further or delivery complexity weighs on margins.
DRI · Capital · Positive Article frames Darden as undervalued with fair value ~$228 vs ~$196 close, citing steady revenue, firmer margins, and richer multiple.
Olive Garden, KFC, United Airlines, 3M and Microsoft Among Headline Makers in PR Newswire Weekly Roundup
PR Newswire released its weekly roundup of notable press releases for July 13–17, 2026, highlighting 13 announcements across consumer, technology, and finance sectors. Olive Garden announced the return of its Never-Ending Pasta Pass, offering 13 weeks of unlimited pasta, sauces, and toppings during the Never-Ending Pasta Bowl promotion. KFC brought back Popcorn Chicken as part of its Kentucky Fried Comeback journey, responding to fan demand. United Airlines introduced a new Economy Plus seating option on its Airbus A321XLR aircraft, featuring extra elbow room and a shared table across an open middle seat, available for sale later this year. 3M and Microsoft announced a strategic partnership to advance AI data center infrastructure by combining Microsoft’s digital and hyperscale capabilities with 3M’s materials science and precision manufacturing. Other highlighted releases included Thomson Reuters and KKR forming a joint venture for Thomson Reuters’ Global Print business, with KKR acquiring a 51% stake and Thomson Reuters receiving approximately $500 million in gross proceeds while retaining 49% equity; Jeep unveiling the 2027 Wrangler Laredo; Lilly acquiring AtaiBeckley to develop therapies for treatment-resistant depression; Chesapeake Utilities’ Florida Energy Pathway Project; The Home Depot’s 2026 Halloween collection; Farmers Insurance introducing tools to simplify insurance understanding; State Affairs raising $70 million for policy and regulatory intelligence; AT&T offering free calls to countries in soccer’s semifinal, third-place, and final matches; and OpenTable revealing its 2026 Top 100 Hotel Restaurants in America.
Darden Restaurants delivered a strong fiscal fourth quarter despite temporary distortions, with adjusted earnings per share of $3.66 and same-store sales growth of 4.6%. LongHorn Steakhouse posted a 9.5% same-store sales increase, its best performance in years, while Olive Garden's reported weakness reflected a lighter-portions menu initiative that reduced same-store sales by roughly 80 basis points. Excluding the impact of a 53rd fiscal week, underlying organic revenue growth is approximately 5.5%, and management expects beef inflation to pressure only the first quarter before easing. The company announced a new $1.5 billion share repurchase authorization and an 8% dividend increase, with analyst price targets ranging from $227 to $235 over the next year.
Darden Stock Outlook Centers on Growth Brands and Cost Risks
Darden Restaurants enters fiscal 2027 with a balanced investment setup, benefiting from positive same-restaurant sales and a more diversified brand portfolio. LongHorn Steakhouse drove same-restaurant sales growth of 7.2% in fiscal 2026, accelerating to 9.5% in the fourth quarter, while Olive Garden remains the anchor at 42.3% of revenues. The company plans 75-80 new restaurant openings and about $875 million in capital spending, but faces margin pressure from expected 3% total inflation and cautious consumer spending. Darden's stock carries a Zacks Rank #3 (Hold) with a VGM Score of B, reflecting a neutral near-term earnings-revision backdrop.
Darden Restaurants leans on digital and value to protect traffic amid margin pressure
Darden Restaurants is adapting to a more selective consumer by emphasizing value and digital convenience, even as cost pressures weigh on margins. Olive Garden’s lighter portions and protein additions have supported traffic without broad discounting, while management keeps pricing below inflation to protect value perception. Digital efforts, including Olive Garden’s partnership with Uber Direct, are attracting younger, higher-income customers and broadening demand beyond in-restaurant dining. The company’s portfolio is also diversifying, with Olive Garden’s revenue share falling to 42.3% in fiscal 2026 from 50% in fiscal 2019, as brands like LongHorn Steakhouse, Yard House, and Cheddar’s Scratch Kitchen take on larger roles. However, total inflation of roughly 3% expected in fiscal 2027, led by early-year beef inflation, may limit near-term margin expansion. Darden currently carries a Zacks Rank #3 (Hold), with a Growth Score of A and a Momentum Score of D, reflecting stronger operating trends than price momentum.
Darden Restaurants removed from Russell indexes after record sales and bylaw changes
Darden Restaurants has been removed from multiple Russell indexes following the latest index reconstitution. The company reported record-breaking sales of US$13.2 billion and net income of US$1.21 billion for fiscal 2026, while also opening a significant number of new restaurants. The board approved an 8% increase in the quarterly dividend to US$1.62 per share and refreshed the share buyback program with up to US$1.5 billion in repurchases. Darden also amended its bylaws to broaden shareholder aggregation limits for director nominations and align procedures with universal proxy rules. The index removal may prompt mechanical selling by funds tracking Russell benchmarks, while the higher dividend and buyback signal management's confidence in cash flows.
World Cup visitor spending surges 16.7%, signaling selective consumer strength
Non-local visitor spending in World Cup host cities jumped 16.7% year over year from June 10 through June 21, according to Bank of America Institute data, far outpacing the 6.3% overall spending increase in those cities. The gap suggests visitors are adding incremental demand rather than just shifting local funds, with their spending flowing into flights, hotels, restaurants, rideshares, merchandise, and card fees. The tournament, running from June 11 to July 19 across 16 host cities in the U.S., Canada, and Mexico, is seen as a multi-week test of consumer behavior in a backdrop where shoppers are increasingly selective. Analysts say the visitor-spending boost could benefit payment networks like Visa and Mastercard, hotel chains such as Marriott and Hilton, and restaurant groups like Darden, but warn that pricing power and margin conversion remain key to watch as the knockout rounds approach.
Darden Posts Weak Outlook as Olive Garden Sales Disappoint
Darden Restaurants Inc. posted a cautious overall profit outlook as same-store sales at Olive Garden trailed expectations, raising questions about demand that overshadowed better-than-expected earnings.
Darden Q4 Earnings Beat Estimates, Revenues Miss, Both Rise Y/Y
Darden Restaurants reported fourth-quarter fiscal 2026 adjusted earnings per share of $3.66, beating the Zacks Consensus Estimate of $3.63, while total sales of $3.72 billion missed the consensus mark of $3.74 billion. Sales increased 13.7% year over year, driven by a blended same-restaurant sales increase of 4.6%, contributions from 43 net new restaurants, and an extra week of operations. By segment, Olive Garden sales rose 11.4% to $1.54 billion, LongHorn Steakhouse sales jumped 21.9% to $1.02 billion, Fine Dining sales grew 10.9% to $371 million, and Other Business sales increased 9.8% to $793.3 million. For fiscal 2027, the company expects total sales between $13.60 billion and $13.75 billion and same-restaurant sales growth of 2.5% to 3.5%, with plans to open 75 to 80 new restaurants.
Darden Restaurants reported quarterly earnings of $3.66 per share, beating the Zacks Consensus Estimate of $3.63 per share. This compares to earnings of $2.98 per share a year ago. The company posted revenues of $3.72 billion for the quarter ended May 2026, missing the Zacks Consensus Estimate by 0.42%, while year-ago revenues were $3.27 billion. Over the last four quarters, Darden has topped consensus revenue estimates three times. Shares have added about 16% since the beginning of the year, outperforming the S&P 500's gain of 7.5%.
Darden Restaurants reported higher fourth-quarter net income and announced a dividend increase along with a new share repurchase program of up to $1.5 billion. Net income rose to $407.8 million, or $3.54 per share, from $304 million, or $2.58 per share, a year earlier. Adjusted earnings per share were $3.66, up from $2.98, while sales increased to $3.72 billion from $3.27 billion. The board declared a quarterly cash dividend of $1.62 per share, an 8% increase, payable on August 3 to shareholders of record as of July 10. The new buyback program, authorized on June 24, replaces the previous authorization. For fiscal 2027, the company expects sales of $13.60 billion to $13.75 billion and earnings per share of $11.10 to $11.35.
Darden Q2 CY2026 revenue meets estimates at $3.72 billion
Darden reported second-quarter fiscal 2026 revenue of $3.72 billion, in line with Wall Street expectations and up 13.7% year on year. GAAP earnings per share came in at $3.51, missing analyst estimates by 3.6%. The company guided full-year revenue to $13.68 billion at the midpoint, close to consensus, while EPS guidance for fiscal 2027 of $11.23 fell 1.3% short of expectations. Same-store sales rose 4.6%, an acceleration from historical levels, and the operating margin improved to 13.9% from 11.7% a year ago. Darden ended the quarter with 2,202 locations, up from 2,159 a year earlier.
Bloomin' Brands and Portillo's Shares Jump as Oil Prices Fall Below $70
Shares of Bloomin' Brands and Portillo's rose sharply in afternoon trading as WTI crude oil fell below $70 per barrel, easing pressure on consumer wallets. Bloomin' Brands gained 4.6% and Portillo's jumped 5.8%, benefiting from the broader rally in restaurant stocks triggered by the 3% drop in oil prices to their lowest since early March. The decline in energy costs acts as a de facto tax cut for middle- and lower-income consumers, boosting discretionary spending on dining out. The restaurant sector, particularly quick-service chains, is highly sensitive to gas prices, and cheaper fuel provides a much-needed catalyst for traffic recovery amid recent slowdowns due to inflation fatigue. Other stocks in the sector also surged, with Wendy's up 30% on retail enthusiasm and a CFO change, while McDonald's and Darden benefited from the macro tailwind.
Brinker International shares rise as oil price drop eases consumer pressure
Brinker International shares rose 3.4% after WTI crude fell below $70 per barrel, easing pressure on consumer wallets. Oil prices dropped 3% to their lowest since early March, acting as a de facto tax cut for middle- and lower-income consumers. The broader restaurant sector, including quick-service and casual dining names like McDonald's and Darden, benefited from the macro tailwind. Cheaper energy provides a much-needed catalyst for traffic recovery, though wage inflation remains a risk to restaurant operating margins. Brinker's CEO recently expressed confidence, citing 20 consecutive quarters of comparable sales growth at Chili's, and an analyst at TD Cowen raised the price target to $192.
Sweetgreen shares jump 6.1% as oil price drop eases consumer pressure
Shares of casual salad chain Sweetgreen jumped 6.1% in afternoon trading after WTI crude fell below $70 per barrel, easing pressure on consumer wallets. Oil prices dropped 3% to their lowest levels since early March, acting as a de facto tax cut for middle- and lower-income consumers. The broader quick-service and casual dining sector, including McDonald's and Darden, also benefited from the macro tailwind, with Wendy's surging 30% on retail enthusiasm and a CFO change. Cheaper energy provides a much-needed catalyst for traffic recovery, though wage inflation remains a risk to restaurant operating margins. Sweetgreen is up 26.7% year-to-date but at $8.78 per share remains 46% below its 52-week high of $16.26 from July 2025.
Krispy Kreme shares jump 8.6% as oil price drop eases consumer pressure
Krispy Kreme shares surged 8.6% in afternoon trading after WTI crude fell below $70 per barrel, easing pressure on consumer wallets. Oil prices dropped 3% to their lowest levels since early March, acting as a de facto tax cut for middle- and lower-income consumers. The broader quick-service and casual dining sector, including McDonald's and Darden, also benefited from the macro tailwind, while Wendy's surged 30% on retail enthusiasm and a CFO change. Cheaper energy provides a much-needed catalyst for restaurant traffic recovery, though wage inflation remains a risk to operating margins.
Darden, McCormick, BlackBerry earnings and PCE data due Thursday
On Thursday, June 25, investors will watch quarterly results from Darden Restaurants, McCormick, and BlackBerry, along with the release of the Personal Consumption Expenditures index, the Federal Reserve's preferred inflation gauge. Economists forecast the PCE ticked up slightly on a month-over-month basis. Darden is expected to report same-store sales growth driven by menu pricing, marketing initiatives, and steady traffic at Olive Garden and Longhorn Steakhouse. McCormick's sales are anticipated to benefit from the addition of McCormick de Mexico, while organic growth remains largely price-driven, and investors will listen for commentary on the planned combination with Unilever's food business. BlackBerry's first-quarter results will be scrutinized for signs of improving profitability and positive cash flow, with attention on management's outlook and whether software growth can offset weakness in other segments.
Darden Restaurants Expected to Report 21.8% Rise in Adjusted EPS
Darden Restaurants is set to announce its fiscal fourth-quarter 2026 results before the market opens on Thursday, June 25, with analysts forecasting an adjusted earnings per share of $3.63, a 21.8% increase from $2.98 in the same quarter last year. The company, which has a market capitalization of $21.6 billion and operates brands including Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House, has exceeded or met Wall Street estimates in two of the past four quarters while missing on two other occasions. For the full fiscal year 2026, analysts project adjusted EPS of $10.62, up 11.2% from $9.55 in fiscal 2025, with a further 7.2% rise to $11.38 expected in fiscal 2027. Darden's shares have declined 4.9% over the past 52 weeks, underperforming the S&P 500 Index's nearly 22.2% gain and the State Street Consumer Discretionary Select Sector SPDR Fund's 6.1% return, as concerns over slowing consumer spending and cost pressures weighed on sentiment. Analysts hold a cautiously optimistic consensus view with a Moderate Buy rating, comprising 17 Strong Buy, one Moderate Buy, and 12 Hold recommendations, and an average price target of $227.39 implying about 8% upside from current levels.
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