Overview
- Adjusted EPS came in at $2.95 versus the $2.94 consensus, with revenue of $3.345 billion up 5.9% and ahead of the $3.333 billion Street view.
- Blended same-restaurant sales rose 4.2%, led by LongHorn Steakhouse at 7.2% and Olive Garden at 3.2%, with 31 net new restaurants contributing to growth.
- Darden narrowed fiscal 2026 adjusted EPS guidance to $10.57–$10.67 and projected sales of $13.224 billion, above consensus, while guiding GAAP EPS to $10.40–$10.50.
- The board declared a $1.50 quarterly cash dividend payable May 1, and the company reported $516 million remaining under its $1 billion share repurchase authorization.
- Goldman Sachs reiterated a Buy with a $235 target and noted slight margin shortfalls versus its estimates, flagging beef and labor cost pressures, weather impacts, and uncertainty around converting 14 Bahama Breeze locations.