Darden Restaurants (NYSE:DRI) Releases Earnings Results

Key Points

• Darden reported quarterly EPS of $2.05, matching analysts’ consensus estimate, with a 9.13% net margin and 57.44% return on equity.
• The company updated fiscal 2027 EPS guidance to $11.10–$11.35, whose $11.225 midpoint is slightly below the $11.28 consensus, while reaffirming its broader outlook and declaring a quarterly dividend.
• LongHorn Steakhouse remains a key growth driver as analysts raised their same-store sales forecast, but weaker Olive Garden expectations amid a casual-dining slowdown could offset some gains. Wall Street maintains a “Moderate Buy” consensus with a $232.09 price target.

Darden Restaurants (NYSE:DRI - Get Free Report) issued its quarterly earnings results on Thursday. The restaurant operator reported $2.05 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $2.05, Zacks reports. Darden Restaurants had a return on equity of 57.44% and a net margin of 9.13%. Darden Restaurants updated its FY 2027 guidance to 11.100-11.350 EPS.

Darden Restaurants Price Performance

Shares of NYSE:DRI opened at $213.46 on Thursday. The company has a 50-day simple moving average of $211.90 and a 200-day simple moving average of $204.73. Darden Restaurants has a one year low of $169.00 and a one year high of $229.76. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.21 and a current ratio of 0.31. The stock has a market capitalization of $24.35 billion, a price-to-earnings ratio of 20.56, a PEG ratio of 2.01 and a beta of 0.60.

More Darden Restaurants News

Here are the key news stories impacting Darden Restaurants this week:

• Positive Sentiment: Darden reported fiscal 2027 first-quarter results, declared its quarterly dividend and reaffirmed its full-year outlook. The combination of ongoing profitability and shareholder returns provides reassurance ahead of the company’s broader fiscal-year performance. Darden Restaurants Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Bank of America raised its estimate for LongHorn’s first-quarter same-store sales growth to 6.5% from 4.2%, citing sustained market-share gains and stronger category trends. This suggests LongHorn remains a key growth engine for Darden. Darden sales momentum strengthens despite casual-dining slowdown
• Neutral Sentiment: Darden updated fiscal 2027 EPS guidance to $11.10–$11.35, compared with the $11.28 consensus estimate. The range broadly brackets expectations, but its $11.225 midpoint is slightly below consensus, limiting the upside surprise.
• Neutral Sentiment: The stock had already been trading above both its 50-day and 200-day moving averages, indicating relatively strong momentum but also leaving investors focused on whether the earnings report and outlook justify its valuation.
• Negative Sentiment: Analysts lowered their Olive Garden expectations amid a broader casual-dining slowdown. Since Olive Garden is a major Darden brand, weaker performance there could offset LongHorn’s market-share gains. Darden sales momentum strengthens despite casual-dining slowdown

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on DRI shares. UBS Group restated a "buy" rating on shares of Darden Restaurants in a research report on Friday, September 11th. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Darden Restaurants from $230.00 to $236.00 and gave the company a "buy" rating in a research report on Friday, June 26th. Piper Sandler raised their price target on shares of Darden Restaurants from $208.00 to $212.00 and gave the stock a "neutral" rating in a report on Friday, June 26th. Morgan Stanley increased their price objective on Darden Restaurants from $236.00 to $255.00 and gave the stock an "overweight" rating in a research report on Monday, September 14th. Finally, BMO Capital Markets reaffirmed a "market perform" rating on shares of Darden Restaurants in a research report on Monday, June 22nd. Eighteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $232.09.

Insider Transactions at Darden Restaurants

In related news, CEO Ricardo Cardenas sold 39,134 shares of the stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $209.06, for a total transaction of $8,181,354.04. Following the completion of the sale, the chief executive officer directly owned 86,146 shares of the company's stock, valued at $18,009,682.76. This trade represents a 31.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Rajesh Vennam sold 8,478 shares of the company's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $210.00, for a total transaction of $1,780,380.00. Following the transaction, the chief financial officer owned 8,569 shares of the company's stock, valued at approximately $1,799,490. The trade was a 49.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 70,185 shares of company stock worth $14,636,984 over the last three months. 0.67% of the stock is currently owned by company insiders.

Darden Restaurants Company Profile

Darden Restaurants, Inc NYSE: DRI is a full-service restaurant company headquartered in Orlando, Florida. It operates and franchises a portfolio of dining brands serving a range of cuisines, price points and occasions, with restaurants primarily located in the United States and select international markets.

Its restaurant portfolio includes Olive Garden, an Italian-American dining chain; LongHorn Steakhouse; Cheddar's Scratch Kitchen; Yard House; The Capital Grille; Seasons 52; Bahama Breeze; Eddie V's; Ruth's Chris Steak House; and Chuy's.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.