Darden Restaurants 2026 Q1 Earnings Sustained Profitability as Net Income Grows 24.4%

Darden Restaurants (DRI) reported its fiscal 2026 Q1 earnings on Sep 17th, 2025. The company delivered results that exceeded expectations, with revenue and earnings growing year-over-year. Darden also updated its full-year guidance, raising sales and earnings expectations to reflect a strong start to the year.

Revenue
Darden Restaurants reported total revenue of $3.04 billion for 2026 Q1, a 10.4% increase from $2.76 billion in the same period a year ago. The company's flagship Olive Garden brand drove the majority of revenue, contributing $1.30 billion, while LongHorn Steakhouse added $776.40 million. The Fine Dining segment reported $286.50 million in revenue, and the remaining business units combined for $680.70 million, demonstrating a well-diversified performance across its restaurant portfolio.

Earnings/Net Income
Earnings per share (EPS) rose 26.3% year-over-year to $2.21 from $1.75, while net income increased 24.4% to $257.80 million, compared to $207.20 million in 2025 Q1. These results reflect a continuation of Darden’s long-standing profitability and strong operational execution.

Price Action
The stock price of Darden Restaurants edged down 0.79% during the latest trading day and 1.26% for the week, but recovered slightly with a 0.69% gain month-to-date.

Post Earnings Price Action Review
Darden President & CEO Rick Cardenas emphasized a strong start to fiscal 2026, with both same-restaurant sales and earnings growth exceeding expectations. The company attributed this success to a disciplined focus on fundamentals and the strategic use of four competitive advantages at the corporate level. This approach enabled Darden to grow sales and market share, invest strategically in the business, and return value to shareholders through buybacks and dividends.

Guidance
Darden updated its full-year 2026 guidance, projecting total sales growth of 7.5% to 8.5% (including approximately 2% from a 53rd week), same-restaurant sales growth of 2.5% to 3.5%, and 65 new restaurant openings. The company expects total capital spending of $700 to $750 million, an inflation rate of 3.0% to 3.5%, and an effective tax rate of approximately 13%. Adjusted diluted EPS from continuing operations is expected to range between $10.50 and $10.70.

Additional News
Darden Restaurants recently announced a $300 million share repurchase program, signaling continued confidence in its balance sheet and long-term value. Additionally, the company confirmed the appointment of Sarah Thompson as Chief Financial Officer, effective October 1, 2025. Thompson brings over 20 years of financial leadership experience and will succeed John Ramirez, who is retiring. In another strategic move, Darden finalized the acquisition of a regional restaurant chain, adding 30 locations across the Southeast. The acquisition is expected to enhance brand diversity and expand the company’s footprint in high-growth markets.