Darden Restaurants Reports Missed Earnings, Olive Garden Growth Slows
Darden Restaurants reported quarterly earnings and revenue that narrowly missed analysts' expectations due to slower growth at its flagship brand, Olive Garden. Same-store sales for the chain rose just 1.1%, compared with a stronger performance from LongHorn Steakhouse, which saw same-store sales increase by 6.2%. The fine-dining segment also posted modest gains of 1.6%. The company's stock fell 5% in premarket trading following the report. Darden maintained its fiscal 2027 guidance for total sales between $13.6 billion and $13.75 billion, with earnings per share projected to range from $11.10 to $11.35. Despite a slight revenue increase of 5.1% year-over-year, the slowdown in Olive Garden's growth reflects shifting consumer behavior as diners become more selective about spending.
Tickers: $DRI
Topics: Company Performance Restaurant Industry Same-Store Sales Growth