Darden Misses First-Quarter Revenue Views, Maintains Full-Year Outlook

09:42 AM EDT, 09/24/2026 (MT Newswires) -- Darden Restaurants' (DRI) fiscal first-quarter revenue narrowly missed market expectations on Thursday as comparable sales were weaker than expected, while the company affirmed its full-year outlook. The Olive Garden and LongHorn Steakhouse parent reported sales of $3.2 billion for the quarter ended Aug. 30, up from $3.04 billion a year earlier, but just shy of the FactSet-polled consensus of $3.21 billion. Adjusted earnings from continuing operations rose to $2.05 a share from $1.97, in line with the Street's view. Consolidated same-restaurant sales increased 3.2% on a comparable calendar basis, below the FactSet-polled consensus of 3.3%. The metric ticked up 1% each for Olive Garden and the fine dining segment, while LongHorn Steakhouse climbed 6.8%. The stock fell 2.3% in Thursday trade, and has gained nearly 14% so far this year. Darden maintained its fiscal 2027 guidance, including net EPS from continuing operations of $11.10 to $11.35. The Street is looking for $11.29. The company in June projected same-restaurant sales growth of 2.5% to 3.5%. Last week, Oppenheimer said that it expected Darden to see an improving earnings trajectory in the near term as trends at Olive Garden accelerate from a first-quarter low point. Earlier this month, UBS Securities said it expected the restaurant operator to reiterate its full-year outlook, despite softening trends at Olive Garden. The restaurant industry is expected to continue to face a challenging consumer backdrop amid elevated inflation and macro pressures, Seaport Research Partners said last week. The brokerage noted at the time that it was generally optimistic on certain major companies in its coverage. In August, Texas Roadhouse (TXRH) reported better-than-expected second-quarter results. In the same month, Brinker International (EAT) issued upbeat fiscal 2027 financial guidance at the midpoint, confident that its Chili's brand will sustain the growth momentum that drove strong fourth-quarter results.