What is the market's earnings forecast for Darden Restaurants next quarter?

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What factors drove the changes in Darden Restaurants's revenue and profit?

What were the key takeaways from Darden Restaurants’s earnings call?

What does Darden Restaurants do and what are its main business segments?

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- **Revenue Beat**: 7% total sales growth (4.3% same-restaurant) exceeded expectations, driven by Olive Garden's 4.7% comp and 30 new openings.
- **Olive Garden Dominance**: Never Ending Pasta Bowl and first-party delivery (4% sales, half incremental) fueled growth, while lighter portions menu boosted frequency and affordability.
- **Margin Resilience**: Adjusted EPS of $2.08 (+2.5%) and 21.8% Olive Garden margin highlight disciplined pricing (130bps below inflation) and cost control.
- **Beef Inflation Risk**: Q2 beef costs up 5.5%, with relief expected in Q4. Q3 EPS growth to mid-single digits as pricing narrows inflation gap.
- **Expansion Acceleration**: 17 new units opened faster than planned, with 65-70 total openings expected, supported by $750-775M capex.

**【CEO Summary Section】**
- **Strong Top-Line Growth**: Q2 revenue exceeded expectations with 7% year-over-year growth, driven by 4.3% same-restaurant sales and 30 net new openings. Olive Garden led with 4.7% same-restaurant sales, while LongHorn and Fine Dining segments also delivered 5.9% and 0.8% growth, respectively.
- **Olive Garden Success**: The Never Ending Pasta Bowl promotion drove record refill rates and 40% incremental sales from first-party delivery. The lighter portion menu, now rolled out to 60% of locations, increased guest frequency and affordability perceptions.
- **New Restaurant Momentum**: 17 new units opened faster than planned, contributing 40 additional operating weeks. Total openings for the year are expected to exceed 70, with a focus on Olive Garden and LongHorn.

**【CFO Financial Commentary】**
- **Revenue and Profitability**: Adjusted diluted EPS of $2.08 (up 2.5% YoY) and $466 million in adjusted EBITDA reflect strong execution despite 5.5% beef inflation. Olive Garden delivered a 21.8% segment profit margin, while LongHorn maintained 16.2% margins despite 320bps underpricing inflation.
- **Cost Management**: Uber Direct fees and brand mix drove 10bps margin pressure, but productivity improvements offset 3.3% labor inflation. Capital spending is on track at $750-775 million, supporting 65-70 new openings.
- **Guidance Update**: Full-year sales growth of 8.5-9.3% reflects 3.5-4.3% same-restaurant growth, with Q3 EPS expected to improve mid-single digits YoY as pricing narrows the inflation gap.

**【Q&A Highlights】**
- **Labor Efficiency**: Comparable restaurants achieved 10bps labor leverage through productivity, despite 3.3% inflation. Total labor margin deleverage was offset by brand mix and Chuy's acquisition.
- **Beef Inflation Outlook**: Beef costs are expected to ease in Q4, with 45% coverage secured for the back half. Elevated prices will pressure margins in Q3 but improve sequentially.
- **Delivery Growth**: Uber Direct sales at 4% of total (half incremental) are expected to accelerate with potential marketing in Q3. Yard House and LongHorn are testing delivery, while Olive Garden focuses on menu innovation.
- **Consumer Trends**: Higher-income guests (+$50k) drove traffic growth, while lower-income guests (+$50k) saw slight pullback. Fine Dining outperformance (Ruth's Chris 3-course menu) suggests value-driven demand persists across segments.

Darden Restaurants, Inc. (DRI) Q2 2026 Earnings Call Transcript

- **Revenue Beat**: $3B total sales (+10% YoY), driven by 4.7% same-restaurant growth and 103 new Chuy's units. Olive Garden (+7.6%) and LongHorn (+8.8%) led.
- **Olive Garden Innovation**: 5.9% sales growth from bold flavors and 40% higher delivery volume post 1M free deliveries. Lighter portion menu items in 40% of restaurants.
- **Commodity Risk**: Beef inflation 3-4% for FY26, with pricing 100bps below inflation in Q2. Q2 EPS growth lowest due to beef cost spike.
- **Delivery Expansion**: Olive Garden delivery mix 5% (50% incremental), Cheddar's off-premise +15%. Testing first-party delivery at additional brand.
- **Global Growth**: 30 new Olive Garden franchise agreements in Canada, total franchise locations 163 (63 U.S., 100 international).

**【CEO Summary Section】**
- **Revenue Growth**: Total sales of $3 billion, up 10% year-over-year, driven by 4.7% same-restaurant sales growth and 103 new Chuy's acquisitions. Olive Garden and LongHorn led with 7.6% and 8.8% sales growth, respectively.
- **Olive Garden Success**: 5.9% same-restaurant sales growth from bold flavors (e.g., Calabrian Steak & Shrimp) and 40% higher delivery volume post 1M free deliveries promotion. Lighter portion menu items now in 40% of restaurants, with 15% increase in affordability scores.
- **LongHorn Momentum**: 5.5% same-restaurant sales growth, #1 in casual dining for food quality, service, and value. 13 consecutive quarters in top quartile of industry performance.
- **Other Brands**: Yard House (+3.3%), Cheddar's (+15% off-premise sales), and Ruth's Chris (successful $55 3-course menu) drove segment growth. Fine Dining segment slightly negative but improving with price certainty offers.
- **Global Expansion**: Sold 8 Canadian Olive Gardens to Recipe Unlimited, with 30 new franchise agreements over 10 years. Total franchise locations now 163 (63 U.S., 100 international).

**【CFO Financial Commentary】**
- **Earnings Performance**: Adjusted diluted EPS of $1.97, +12.6% YoY. Adjusted EBITDA $439M, with $358M returned to shareholders (dividends $175M, buybacks $183M).
- **Cost Management**: Food expenses 20bps below inflation, labor 20bps unfavorable due to higher performance-based pay. Restaurant-level EBITDA 18.9%, down 10bps YoY due to Uber fees and menu investments.
- **Commodity Risk**: Beef inflation 3-4% for FY26, with only 25% coverage for next 6 months. Pricing 100bps below inflation in Q2, narrowing gap through year.
- **Guidance Update**: Total sales growth 7.5-8.5%, same-restaurant sales 2.5-3.5%, 65 new units, and EPS $10.50-$10.70. Q2 EPS growth lowest due to beef cost spike.

**【Q&A Highlights】**
- **Commodity Volatility**: Beef costs up 30-40% YoY, but Darden pricing 100bps below inflation in Q2. Long-term strategy to mitigate through menu innovation (e.g., lighter portions, delivery).
- **Delivery Growth**: Olive Garden delivery mix 5% (50% incremental), Cheddar's off-premise +15%. Uber Direct fees offset by marketing savings.
- **Consumer Trends**: Casual dining gaining share from fast food due to value perception. Higher-income guests driving delivery adoption (40% above pre-campaign levels).
- **Menu Strategy**: Testing smaller portion sizes at Olive Garden to expand price breadth. LongHorn focusing on food quality consistency despite 60bps margin pressure.
- **Unit Growth**: 65 new units in FY26, with smaller prototypes (e.g., Yard House, Cheddar's) reducing costs and improving returns.

Darden Restaurants, Inc. (DRI) Q1 2026 Earnings Call Transcript

- **Revenue Growth**: 15% YoY driven by North American recovery and AI investments.
- **Financial Performance**: $420M GAAP net income, $1.08 Non-GAAP EPS, 5% YoY expense reduction.
- **Strategic Initiatives**: Uber Direct targeting 40-50% sales growth in 2026.
- **Expansion**: 60-65 new units, 2.7-3% same-restaurant sales growth.
- **International Focus**: India and Spain expansion with disciplined pricing.


**【CEO Summary Section】**
- Revenue grew 15% YoY, driven by North American market recovery and AI investments.
- Emphasized continued AI focus for margin improvement and long-term growth.

**【CFO Financial Commentary】**
- GAAP net income $420M, Non-GAAP EPS $1.08, exceeding expectations.
- Operating expenses down 5% YoY through cost control and strategic investments.

**【Q&A Highlights】**
- Uber Direct initiative boosted sales 40-50%, targeting 2026 growth without margin dilution.
- 2026 guidance: 60-65 new units, 2.7-3% same-restaurant sales growth.
- Focus on affordability and menu innovation to compete in casual dining.
- Long-term strategy includes international expansion in India and Spain.
- Risk management through disciplined pricing and margin optimization.


Darden Restaurants, Inc. (DRI) Q4 2025 Earnings Call Transcript

- **Q3 Revenue Beat**: 6% total sales growth vs. 0.7% same-restaurant growth, outpacing industry benchmarks. 
- **Olive Garden Dominance**: 23% segment profit margin (50bps expansion) from Fan Favorites promotion and 2.5% delivery sales mix. 
- **LongHorn Resilience**: 70bps margin expansion to 19.4% despite 1% same-restaurant sales decline (adjusted for external factors). 
- **Q4 Guidance Confidence**: >3% same-restaurant sales growth with stable margins despite 3% inflation headwinds. 
- **Delivery Growth**: 40-50% incremental sales with no marketing, targeting end-of-year TV campaign for broader awareness. 


**【CEO Summary Section】**
- **Revenue Growth and Strategy**: Fiscal Q3 revenue grew 6% year-over-year, driven by 0.7% same-restaurant sales growth and new restaurant openings. Olive Garden and LongHorn led the way with strong menu innovation (e.g., Fan Favorites promotion, Buy One, Take One) and delivery rollouts. 
- **Operational Excellence**: Despite 100+ basis points of weather-related headwinds, all segments delivered positive same-restaurant sales when adjusted for external factors. Olive Garden's delivery pilot achieved 2.5% sales mix with no marketing support, and Uber Direct rollout expanded to Cheddar's. 
- **Brand Momentum**: Olive Garden's Q3 segment profit margin rose 50bps to 23%, while LongHorn's margin expanded 70bps to 19.4%. New smaller-prototype restaurants (20% smaller, 15% lower cost) performed above expectations. 

**【CFO Financial Commentary】**
- **Financial Highlights**: Q3 adjusted EPS of $2.80 (+6.9% YoY) on $3.2B total sales. Adjusted EBITDA of $559M drove $217M shareholder returns (dividends + buybacks). 
- **Margin Performance**: Restaurant-level EBITDA improved 50bps to 21.1%, supported by 70bps food cost leverage and stable labor (3.5% inflation fully offset by productivity). 
- **Outlook**: Q4 guidance includes >3% same-restaurant sales growth and $2.88-$2.95 EPS. Fiscal '26 plans include 60-65 new restaurants, $375-400M capex, and 53rd-week EPS boost of $0.20. 

**【Key Q&A Themes】**
- **Consumer Trends**: Guests with incomes >$50K drove growth, while <$50K guests were more price-sensitive. Delivery guests skewed younger/higher income with 20% higher check averages. 
- **Tariff Risk**: 80% of ingredients domestically sourced; 20% imported goods could shift to domestic if tariffs materialize. 
- **LongHorn Strength**: Q3 same-restaurant sales +5% (adjusted for weather/holiday shift), driven by quality focus (e.g., fire-grilled lamb chops). 
- **M&A Strategy**: Chuy's integration on track; no immediate M&A plans beyond organic growth. 


Darden Restaurants (DRI)-20 Mar 25-2025 Q3 Earnings call transcript

Darden Restaurants (DRI)-19 Dec 24-2025 Q2 Earnings call transcript

Darden Restaurants (DRI)-19 Sep 24-2025 Q1 Earnings call transcript

Darden Restaurants (DRI)-20 Jun 24-2024 Q4 Earnings call transcript

Darden Restaurants (DRI)-21 Mar 24-2024 Q3 Earnings call transcript

Darden Restaurants (DRI)-15 Dec 23-2024 Q2 Earnings call transcript

Darden Restaurants (DRI)-21 Sep 23-2024 Q1 Earnings call transcript

Darden Restaurants (DRI)-22 Jun 23-2023 Q4 Earnings call transcript

Darden Restaurants (DRI)-23 Mar 23-2023 Q3 Earnings call transcript

Darden Restaurants (DRI)-16 Dec 22-2023 Q2 Earnings call transcript

Darden Restaurants (DRI)-23 Sep 22-2023 Q1 Earnings call transcript

Darden Restaurants (DRI)-23 Jun 22-2022 Q4 Earnings call transcript

Darden Restaurants (DRI)-24 Mar 22-2022 Q3 Earnings call transcript

Darden Restaurants (DRI)-17 Dec 21-2022 Q2 Earnings call transcript

Darden Restaurants (DRI)-23 Sep 21-2022 Q1 Earnings call transcript

Darden Restaurants (DRI)-24 Jun 21-2021 Q4 Earnings call transcript

Darden Restaurants (DRI)-25 Mar 21-2021 Q3 Earnings call transcript

Darden Restaurants (DRI)-18 Dec 20-2021 Q2 Earnings call transcript

Darden Restaurants (DRI)-24 Sep 20-2021 Q1 Earnings call transcript

Darden Restaurants (DRI)-25 Jun 20-2020 Q4 Earnings call transcript

Darden Restaurants (DRI)-19 Mar 20-2020 Q3 Earnings call transcript

Darden Restaurants (DRI)-19 Dec 19-2020 Q2 Earnings call transcript

Darden Restaurants (DRI)-19 Sep 19-2020 Q1 Earnings call transcript

Darden Restaurants (DRI)-20 Jun 19-2019 Q4 Earnings call transcript

Darden Restaurants (DRI)-21 Mar 19-2019 Q3 Earnings call transcript

Darden Restaurants (DRI)-18 Dec 18-2019 Q2 Earnings call transcript

Darden Restaurants (DRI)-20 Sep 18-2019 Q1 Earnings call transcript

Darden Restaurants (DRI)-21 Jun 18-2018 Q4 Earnings call transcript

Darden Restaurants (DRI)-22 Mar 18-2018 Q3 Earnings call transcript

Darden Restaurants (DRI)-19 Dec 17-2018 Q2 Earnings call transcript

Darden Restaurants (DRI)-26 Sep 17-2018 Q1 Earnings call transcript

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