Darden Restaurants (DRI) Q4 2026 earnings

Darden Restaurants The company reported mixed quarterly results Thursday as same-store sales growth at its fine restaurants and Olive Garden fell short of expectations.

The company’s forecast for fiscal 2027 earnings and revenue was also at the lower end of Wall Street’s estimates.

The company’s shares fell more than 1 percent in morning trading.

Here’s what the company reported compared to Wall Street expectations for its fourth fiscal quarter ended May 31, according to a survey of LSEG analysts.

• Earnings per share: $3.66 vs expected $3.63
• Revenues: 3.72 billion dollars, while the expectation was 3.73 billion dollars

Darden reported net income of $404.9 million, or $3.51 per share, compared to $303.8 million, or $2.58 per share, a year ago.

Excluding restaurant closing costs and other items, the company earned $3.66 per share.

net sales It rose 13.7% to $3.72 billion, supported by the addition of an extra week to the fiscal year.

Same-store sales across all of Darden’s restaurants increased 4.6%, beating StreetAccount estimates for 4.1% growth.

“Consumer spending remains pretty resilient overall,” Darden CEO Rick Cardenas said on the company’s earnings conference call. “Consumers’ mood is still a bit cautious, but as we’ve said several times before, weak consumer sentiment doesn’t necessarily mean reduced spending.”

He added that some of Darden’s casual dining brands have seen an increase in visits from all income groups, perhaps fueled by tax rebates. However, traffic from consumers under the age of 35 weakened slightly.

LongHorn Steakhouse led the portfolio with same-store sales growth of 9.5%, beating StreetAccount estimates by 7.1%. The chain surpassed Olive Garden to become Darden’s best-performing company, but it still accounts for less of the company’s overall sales.

The fourth quarter marked LongHorn’s annual return on lamb chops. Darden executives said the chain purchased more lamb than the previous year, but sold out in half the time.

Olive Garden, meanwhile, saw same-store sales rise 2.4% in the quarter, missing expectations for 3.2% growth.

Darden’s upscale restaurant segment reported same-store sales growth of 1.9%, falling short of StreetAccount’s forecasts of 3.1%. The episode features The Capital Grille and Ruth’s Chris.

In the company’s “other business” segment, same-store sales increased 4.6%; this rate was above the 3% predicted by analysts. The division includes a handful of smaller restaurant chains, such as Yard House and Chuy’s.

Looking ahead to the next fiscal year, Darden projects total sales to be between $13.60 billion and $13.75 billion and net earnings per share from continuing operations to be in the range of $11.10 to $11.35. Wall Street expects the company to report revenue of $13.72 billion and earnings of $11.40 per share in fiscal 2027.

“We do not expect any material change in industry performance,” Darden CFO Raj Vennam said on the call.

Darden also estimates it will report 2.5% to 3.5% same-store sales growth for fiscal 2027 and open 75 to 80 new locations. Additionally, 11 of Bahama Breeze restaurants will be converted into locations of other brands; Darden announced the end of the Caribbean-inspired chain in February.