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Darden Restaurants Q1 Sales Rise 5.1%

Darden Restaurants reported first-quarter fiscal 2027 sales of $3.2 billion, up 5.1% from $3.04 billion a year earlier. Same-restaurant sales rose 3.1% on a fiscal-calendar basis and 3.2% on a comparable-calendar basis.

By brand, Olive Garden posted quarterly sales of $1.33 billion, up from $1.30 billion, while same-restaurant sales increased 1.1% on a fiscal-calendar basis and 1.0% on a comparable-calendar basis. LongHorn Steakhouse sales climbed to $860.9 million from $776.4 million, with same-restaurant sales up 6.2% and 6.8%, respectively. Fine dining sales increased to $304.2 million from $286.5 million, with same-restaurant sales up 1.6% and 1.0%. Other business sales rose to $705.4 million from $680.7 million, and same-restaurant sales increased 13.8% and 4.5%.

Segment profit also rose across the portfolio. Olive Garden segment profit increased to $270.8 million from $267.6 million. LongHorn Steakhouse segment profit jumped to $154.6 million from $134.9 million. Fine dining segment profit edged up to $39.6 million from $38.7 million, and other business segment profit rose to $111.5 million from $109.3 million.

Reported diluted net earnings per share from continuing operations were $2.05, up 4.1% from last year’s adjusted figure. Darden repurchased about 1.1 million shares for $222.3 million during the quarter, and had $1.3 billion remaining under its $1.5 billion repurchase authorization at quarter-end.

The company declared a quarterly dividend of $1.62 per share, payable Nov. 2, 2026, to shareholders of record Oct. 9, 2026.

For fiscal 2027, Darden reaffirmed its full-year outlook and continued to guide to diluted net earnings per share from continuing operations of $11.10 to $11.35. The market has reacted to these announcements by moving the company's shares 0.07% to a price of $213.69. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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