Darden Restaurants Expected to Exceed Q1 Estimates and Raise Full-Year Outlook, According to Truist

Darden Restaurants is expected to report Q4 results above estimates, according to Truist. The company is likely to slightly lift its FY23 outlook. Darden owns and operates restaurants under various brands including Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen. The group had 2,181 restaurants as of May 26, 2024.

Darden Restaurants, Inc. (NYSE: DRI) is poised to release its fiscal 2026 first quarter financial results on September 18, according to recent market expectations. The company, which owns and operates various restaurant brands including Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen, is anticipated to report earnings above estimates, signaling a robust performance in the fourth quarter of fiscal 2025 [1].

Analysts at Truist predict that Darden Restaurants will slightly lift its fiscal year 2023 outlook, reflecting the company's strong operational performance and resilient consumer demand. This positive outlook is driven by the company's successful partnerships with food delivery platforms like Uber Direct, which have contributed to increased sales and growth in same-store sales [1].

The company's recent earnings reports have been encouraging, with strong performances from its core brands such as Olive Garden and LongHorn Steakhouse. For instance, Olive Garden's sales growth has been particularly notable, with the chain experiencing its fastest sales growth in over two years [1]. This growth is attributed to factors such as a strong menu offering, customer loyalty programs, and effective marketing strategies.

Moreover, Darden Restaurants' recent stock performance has been impressive, with shares trading at an all-time high following the release of its Q4 2025 earnings report. The company's stock has seen significant appreciation, with a twelve-month high of $228.27 and a twelve-month low of $153.98 [2]. This positive stock performance is a reflection of investor confidence in the company's growth prospects and strong financial health.

Institutional investors and hedge funds have also shown confidence in Darden Restaurants' stock, with several major players increasing their stakes in the company. For example, T. Rowe Associates Inc. MD raised its stake by 0.7% during the first quarter, owning approximately $57.32 million worth of shares [2]. This increased stake is indicative of the company's attractiveness as an investment opportunity.

Darden Restaurants' financial performance has been bolstered by its strategic initiatives and focus on core brands. The company's recent dividend increase and share repurchase program also signal its commitment to returning value to shareholders. The board approved a new $1 billion share-repurchase program, allowing the repurchase of up to 3.8% of the company's stock [2].

As the company prepares to release its Q4 results, investors and financial professionals will be closely monitoring the earnings report for insights into its future growth prospects. The expected strong performance in the fourth quarter of fiscal 2025 is likely to provide further validation of Darden Restaurants' strategic direction and resilience in the face of market challenges.

References:
[1] https://stockanalysis.com/stocks/dri/
[2] https://www.marketbeat.com/instant-alerts/filing-price-t-rowe-associates-inc-md-has-5732-million-stock-holdings-in-darden-restaurants-inc-dri-2025-08-27/