Core Insights - Darden Restaurants, Inc. (NYSE:DRI) stock reached a record high of $228.27 and was last seen at $226.29, reflecting a 1.6% increase following a positive earnings report and a new share repurchase program [1] - The company reported adjusted earnings of $2.98 per share and revenue of $3.27 billion for the fiscal fourth quarter, surpassing Wall Street estimates of $2.97 and $3.26 billion respectively [1] - Darden announced a new $1 billion share repurchase program, indicating a shareholder-friendly approach [1] Options Activity - Options trading activity has increased, with 1,674 calls and 1,705 puts traded, which is seven times the average intraday pace [2] - The most popular options contracts are the June 220 put and 230 call [2] Stock Performance - DRI stock has increased by 44.7% year over year and 19.6% in 2024 alone [2] - The stock's rally has faced resistance near the $229 level, which may act as a technical ceiling in the short term [2] - A cluster of rising short-term moving averages continues to provide support for the stock [2]

Financial Data and Key Metrics Changes - In the fourth quarter, total sales reached $3.3 billion, a 10.6% increase compared to the prior year, driven by same restaurant sales growth of 4.6% and positive traffic growth [16][24] - Adjusted diluted net earnings per share from continuing operations increased by 12.5% to $2.98, with adjusted EBITDA of $582 million [16][24] - For fiscal year 2025, same restaurant sales growth was 2%, outperforming the industry by 170 basis points, with total sales surpassing $12 billion for the first time [23][24] Business Line Data and Key Metrics Changes - Olive Garden's total sales increased by 8.1% with same restaurant sales growth of 6.9%, outperforming the industry benchmark by 390 basis points [19][20] - LongHorn Steakhouse saw total sales increase by 9.3%, driven by same restaurant sales growth of 6.7% [20] - The Fine Dining segment experienced a 2.3% increase in total sales, but same restaurant sales were negative for the quarter [21] Market Data and Key Metrics Changes - The casual dining industry saw average same restaurant sales grow by 30% and guest counts increase by 0.9% [6] - The company noted that casual dining is gaining market share as consumers perceive it as a better value compared to fast food [44][45] Company Strategy and Development Direction - The company is focusing on disciplined execution of its strategy, emphasizing sales growth while maintaining margins [15][26] - A five-year strategic planning process was completed, with each brand developing plans to enhance their competitive positioning [32] - The company plans to open 60 to 65 new restaurants in fiscal 2026, with a focus on Olive Garden and LongHorn as the primary contributors [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the casual dining sector's recovery, attributing it to consumer preferences shifting towards dining out [44][45] - The company anticipates total sales growth of 7% to 8% for fiscal 2026, with same restaurant sales growth projected at 2% to 3.5% [25][26] - Management acknowledged macroeconomic uncertainties but remains optimistic about maintaining strong sales momentum [69] Other Important Information - The company announced a 7% increase in dividends to $1.50 per share, implying an annual dividend of $6 [25] - Strategic alternatives for the Bahama Breeze brand are being considered, including a potential sale [33][34] - The company is expanding its international franchising efforts, with new agreements for Olive Garden locations in various countries [36] Q&A Session Summary Question: Why is casual dining performing well currently? - Management believes consumers are recognizing casual dining as a great value, leading to increased patronage [44][45] Question: What is the outlook for unit growth? - The company expects to ramp up unit growth to over 3% in the next five years, with Olive Garden and LongHorn leading the way [46][48] Question: How does the updated long-term framework affect margin expansion? - The new framework reflects a more holistic view of margins, with a focus on sales growth and reinvestment [51] Question: What is the impact of Uber Direct on Olive Garden's sales? - Uber Direct contributed approximately 3.5% to total sales at Olive Garden, with a positive mix impact of about 40 basis points [54][56] Question: How is the company addressing fine dining challenges? - Management stated that fine dining has faced challenges due to changing consumer behaviors post-COVID, but they are confident in their leadership and strategies [81][82]

Financial Data and Key Metrics Changes - In Q4, total sales reached $3.3 billion, a 10.6% increase year-over-year, driven by a same restaurant sales growth of 4.6% and positive traffic growth [15][19] - Adjusted diluted net earnings per share from continuing operations increased by 12.5% to $2.98, with adjusted EBITDA of $582 million [15][23] - For the full fiscal year, same restaurant sales growth was 2%, outperforming the industry by 170 basis points, with total sales surpassing $12 billion for the first time [22][23] Business Line Data and Key Metrics Changes - Olive Garden's total sales increased by 8.1% with same restaurant sales growth of 6.9%, outperforming the industry benchmark by 390 basis points [19][20] - LongHorn Steakhouse saw total sales increase by 9.3%, with same restaurant sales growth of 6.7%, exceeding the industry benchmark by 370 basis points [20] - The Fine Dining segment experienced a 2.3% increase in total sales, but same restaurant sales were negative, resulting in a lower segment profit margin [21] Market Data and Key Metrics Changes - The casual dining industry saw average same restaurant sales growth of 30% and guest counts grew by 0.9% [5] - Olive Garden's delivery service, Uber Direct, contributed approximately 3.5% of total sales, with a mix impact of about 40 basis points [55][56] Company Strategy and Development Direction - The company remains committed to a long-term financial framework targeting 10-15% total shareholder return, with an increased emphasis on sales growth and margin maintenance [26][29] - Strategic planning has led to the decision to close 15 Bahama Breeze locations, focusing on higher-performing brands and considering strategic alternatives for Bahama Breeze [32][82] - The company is expanding its international presence, with agreements for new Olive Garden locations in Canada and other countries [34][36] Management's Comments on Operating Environment and Future Outlook - Management noted that casual dining is perceived as a great value, leading to increased consumer interest and market share from fast food and fast casual [46] - The outlook for fiscal 2026 anticipates total sales growth of 7-8%, with same restaurant sales growth of 2-3.5% [24][25] - Management expressed caution regarding macroeconomic uncertainties impacting future performance, despite strong momentum observed in Q4 [70][72] Other Important Information - The company announced a 7% increase in dividends to $1.50 per share, implying an annual dividend of $6 [24] - Leadership transitions were discussed, including the retirement of Dan Kiernan as President of Olive Garden and the appointment of John Wilkerson as his successor [36][37] Q&A Session Summary Question: Why is casual dining performing well currently? - Management believes consumers are recognizing casual dining as a great value, leading to increased patronage and market share from fast food [46] Question: What is the outlook for unit growth? - The company expects to open 60-65 new restaurants, with Olive Garden and LongHorn contributing significantly to this growth [48] Question: How does the updated long-term framework affect margin expansion? - The new framework reflects a more holistic view of margin opportunities, with a focus on sales growth and reinvestment [51] Question: What is the impact of Uber Direct on sales? - Uber Direct contributed about 3.5% of total sales at Olive Garden, with a significant portion of new customers using the delivery service [55][90] Question: What are the expectations for inflation in fiscal 2026? - The company anticipates total inflation of 2.5-3%, with food inflation around 2.5% and labor inflation at approximately 3.5% [65]

Darden Restaurants (DRI) came out with quarterly earnings of $2.98 per share, beating the Zacks Consensus Estimate of $2.96 per share. This compares to earnings of $2.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.68%. A quarter ago, it was expected that this owner of Olive Garden and other chain restaurants would post earnings of $2.81 per share when it actually produced earnings of $2.80, delivering a surprise of -0.36 ...

Earnings Call Fiscal 2025: Fourth Quarter Results June 20, 2025 Disclaimer/Non-GAAP Information IMPORTANT NOTICE The following slides are part of a presentation by Darden Restaurants, Inc. (the "Company") and are intended to be viewed as part of that presentation (the "Presentation"). No representation is made that the Presentation is a complete description of the Company's performance, financial condition or outlook. Forward-looking statements in this communication regarding our expected earnings performan ...

Core Insights - Darden Restaurants exceeded Wall Street's earnings and revenue expectations, predicting solid growth for fiscal year 2026 [1][2] - The company's stock rose over 2% in premarket trading following the earnings report [1] Financial Performance - Darden reported fiscal fourth-quarter net income of $303.8 million, or $2.58 per share, compared to $308.1 million, or $2.58 per share, a year earlier [1] - Excluding costs from the Chuy's Tex Mex acquisition, adjusted earnings were $2.98 per share for the fiscal fourth quarter [2] - Net sales increased by 10.6% to $3.3 billion, driven by the acquisition of 103 Chuy's restaurants and 25 net new restaurants [2] - Same-store sales rose 4.6%, surpassing StreetAccount estimates of 3.5% [2] Future Outlook - For fiscal year 2026, Darden forecasts revenue growth of 7% to 8%, including approximately 2% growth from an extra week in the year [3] - Adjusted earnings are expected to be in the range of $10.50 to $10.70 per share, including 20 cents related to the additional week [3] Brand Performance - Olive Garden, accounting for roughly 40% of Darden's quarterly revenue, reported same-store sales growth of 6.9%, exceeding expectations of 4.6% [5] - LongHorn Steakhouse's same-store sales increased by 6.7%, beating the anticipated growth of 5.3% [5] - The fine dining segment, including Ruth's Chris Steak House and The Capital Grille, experienced a same-store sales decline of 3.3%, compared to the expected decline of 0.2% [6] - The remaining segment, which includes Cheddar's Scratch Kitchen and Yard House, saw same-store sales growth of 1.2%, slightly above estimates of 1.1% [6] Strategic Initiatives - Cheddar's Scratch Kitchen is piloting on-demand delivery through a partnership with Uber Direct in 10 of its restaurants [7] - Darden's board of directors authorized a $1 billion share repurchase program, replacing the previous authorization [7] Stock Performance - Darden Restaurants' stock has increased approximately 19% year-to-date [8]

[Fiscal 2025 Performance and 2026 Outlook](index=1&type=section&id=Darden%20Restaurants%20Reports%20Fiscal%202025%20Fourth%20Quarter%20and%20Full%20Year%20Results) [Fourth Quarter 2025 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%202025%20Financial%20Highlights) In the fourth quarter of fiscal 2025, Darden reported a 10.6% increase in total sales to $3.3 billion, driven by a 4.6% rise in same-restaurant sales and contributions from the Chuy's acquisition, with adjusted diluted net earnings per share growing by 12.5% to $2.98 Q4 2025 Key Financial Metrics | Metric | Value | YoY Change | | :--- | :--- | :--- | | Total Sales | $3.3 billion | +10.6% | | Adjusted Diluted EPS | $2.98 | +12.5% | | Reported Diluted EPS | $2.58 | 0.0% | | Blended Same-Restaurant Sales | +4.6% | N/A | Q4 2025 Same-Restaurant Sales by Brand | Brand | Same-Restaurant Sales Growth | | :--- | :--- | | Olive Garden | 6.9% | | LongHorn Steakhouse | 6.7% | | Fine Dining | (3.3)% | | Other Business | 1.2% | - Sales growth was primarily driven by a blended same-restaurant sales increase of **4.6%**, sales from the acquisition of 103 Chuy's restaurants, and 25 net new restaurants[4](index=4&type=chunk) - The company repurchased **$51 million** of its outstanding common stock during the quarter[4](index=4&type=chunk) [Full Year Fiscal 2025 Financial Highlights](index=1&type=section&id=Fiscal%202025%20Financial%20Highlights) For the full fiscal year 2025, total sales increased by 6.0% to $12.1 billion, supported by a 2.0% increase in same-restaurant sales, while adjusted diluted net earnings per share from continuing operations rose by 7.5% to $9.55 Fiscal Year 2025 Key Financial Metrics | Metric | Value | YoY Change | | :--- | :--- | :--- | | Total Sales | $12.1 billion | +6.0% | | Adjusted Diluted EPS | $9.55 | +7.5% | | Reported Diluted EPS | $8.88 | +4.1% | | Blended Same-Restaurant Sales | +2.0% | N/A | Fiscal Year 2025 Same-Restaurant Sales by Brand | Brand | Same-Restaurant Sales Growth | | :--- | :--- | | Olive Garden | 1.7% | | LongHorn Steakhouse | 5.1% | | Fine Dining | (3.0)% | | Other Business | 0.2% | - CEO Rick Cardenas stated the company had a successful year due to adherence to its strategy, anchored in four competitive advantages and being 'brilliant with the basics'[3](index=3&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) For fiscal year 2025, Olive Garden and LongHorn Steakhouse were the primary drivers of profitability, with segment profits of $1.16 billion and $582.7 million, respectively, while the 'Other Business' segment, now including Chuy's, also saw significant growth Q4 Segment Performance ($ in millions) | Segment | Q4 2025 Sales | Q4 2024 Sales | Q4 2025 Profit | Q4 2024 Profit | | :--- | :--- | :--- | :--- | :--- | | Olive Garden | $1,381.0 | $1,277.5 | $328.4 | $291.4 | | LongHorn Steakhouse | $833.8 | $762.7 | $167.8 | $147.2 | | Fine Dining | $334.6 | $327.1 | $62.9 | $64.6 | | Other Business | $722.3 | $590.0 | $126.3 | $102.5 | Annual Segment Performance ($ in millions) | Segment | FY 2025 Sales | FY 2024 Sales | FY 2025 Profit | FY 2024 Profit | | :--- | :--- | :--- | :--- | :--- | | Olive Garden | $5,212.9 | $5,067.0 | $1,163.9 | $1,117.4 | | LongHorn Steakhouse | $3,025.5 | $2,806.2 | $582.7 | $516.8 | | Fine Dining | $1,304.8 | $1,291.5 | $242.5 | $245.0 | | Other Business | $2,533.5 | $2,225.3 | $397.4 | $340.3 | - The company changed its segment profit reporting to exclude pre-opening costs starting in Q4 2025, with prior year figures recast for comparability, and sales and profits from Chuy's are included in the Other Business segment[6](index=6&type=chunk) [Shareholder Returns and Capital Allocation](index=3&type=section&id=Shareholder%20Returns%20and%20Capital%20Allocation) Darden increased its quarterly dividend by 7.1% to $1.50 per share and authorized a new $1 billion share repurchase program, underscoring its commitment to delivering 10-15% total shareholder return - The Board of Directors declared a quarterly cash dividend of **$1.50** per share, a **7.1%** increase from the previous quarter[8](index=8&type=chunk) - A new share repurchase program was authorized, allowing the company to buy back up to **$1 billion** of its common stock with no expiration date[9](index=9&type=chunk) - During Q4, the company repurchased approximately **0.2 million** shares for a total of **$51 million**[9](index=9&type=chunk) [Fiscal 2026 Financial Outlook](index=3&type=section&id=Fiscal%202026%20Financial%20Outlook) For fiscal 2026, which includes a 53rd week, Darden projects total sales growth of 7% to 8% and same-restaurant sales growth of 2% to 3.5%, anticipating diluted net EPS between $10.50 and $10.70 Fiscal 2026 Projections | Metric | Projected Value | | :--- | :--- | | Total Sales Growth | 7% to 8% | | Same-Restaurant Sales Growth | 2% to 3.5% | | New Restaurant Openings | 60 to 65 | | Diluted Net EPS | $10.50 to $10.70 | | Total Capital Spending | $700 to $750 million | | Total Inflation | 2.5% to 3.0% | | Effective Tax Rate | ~13% | - The fiscal 2026 outlook includes an extra (53rd) week, which is expected to contribute approximately **2%** to total sales growth and **$0.20** to diluted net EPS[10](index=10&type=chunk)[15](index=15&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) [Consolidated Statements of Earnings](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20EARNINGS) For the twelve months ended May 25, 2025, Darden's sales increased to $12.08 billion from $11.39 billion in the prior year, with operating income rising to $1.36 billion and earnings from continuing operations reaching $1.05 billion, or $8.88 per diluted share Annual Earnings Summary (in millions, except per share data) | Metric | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Sales | $12,076.7 | $11,390.0 | | Operating Income | $1,362.3 | $1,314.2 | | Earnings from Continuing Operations | $1,051.0 | $1,030.5 | | Diluted EPS from Continuing Operations | $8.88 | $8.53 | Q4 Earnings Summary (in millions, except per share data) | Metric | Q4 2025 | Q4 2024 | | :--- | :--- | :--- | | Sales | $3,271.7 | $2,957.3 | | Operating Income | $382.8 | $395.4 | | Earnings from Continuing Operations | $304.0 | $310.0 | | Diluted EPS from Continuing Operations | $2.58 | $2.58 | [Consolidated Balance Sheets](index=10&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of May 25, 2025, Darden's total assets grew to $12.59 billion from $11.32 billion the previous year, primarily due to increases in Goodwill, Trademarks, and property, while total liabilities also increased to $10.28 billion from $9.08 billion Balance Sheet Summary (in millions) | Account | May 25, 2025 | May 26, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $240.0 | $194.8 | | Total current assets | $937.7 | $822.8 | | Total assets | $12,587.0 | $11,323.0 | | **Liabilities & Equity** | | | | Total current liabilities | $2,247.5 | $2,192.5 | | Long-term debt | $2,128.9 | $1,370.4 | | Total liabilities | $10,275.7 | $9,080.5 | | Total stockholders' equity | $2,311.3 | $2,242.5 | [Consolidated Statements of Cash Flows](index=11&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For fiscal year 2025, net cash from operating activities increased to $1.71 billion, with $1.28 billion used in investing activities, including $613.7 million for business acquisitions, and $385.8 million used in financing activities Annual Cash Flow Summary (in millions) | Activity | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,707.0 | $1,621.7 | | Net cash used in investing activities | $(1,278.3) | $(1,324.6) | | Net cash used in financing activities | $(385.8) | $(483.4) | | **Increase (decrease) in cash** | **$34.4** | **$(196.1)** | - Key uses of cash in financing activities for FY 2025 included **$658.5 million** for dividends and **$418.2 million** for common stock repurchases[32](index=32&type=chunk) - Investing activities were dominated by **$644.6 million** in property and equipment purchases and **$613.7 million** used for business acquisitions[32](index=32&type=chunk) [Reconciliation of GAAP to Non-GAAP Earnings](index=6&type=section&id=Non-GAAP%20Information) The company provides non-GAAP earnings to offer a clearer understanding of its core operating results, with Q4 2025 reported diluted EPS of $2.58 adjusted to $2.98 and full fiscal year 2025 reported EPS of $8.88 adjusted to $9.55 Q4 2025 EPS Reconciliation (per share) | Item | Value | | :--- | :--- | | Reported Diluted EPS | $2.58 | | Transaction/integration costs | +$0.04 | | Impairment on restaurant disposition | +$0.30 | | Restaurant closing costs | +$0.06 | | **Adjusted Diluted EPS** | **$2.98** | Full Year 2025 EPS Reconciliation (per share) | Item | Value | | :--- | :--- | | Reported Diluted EPS | $8.88 | | Transaction/integration costs | +$0.31 | | Impairment on restaurant disposition | +$0.30 | | Restaurant closing costs | +$0.06 | | **Adjusted Diluted EPS** | **$9.55** | - Adjustments in fiscal 2025 primarily relate to Chuy's transaction costs and impairment charges for **22** underperforming restaurants that were permanently closed[22](index=22&type=chunk) [Other Information](index=4&type=section&id=Other%20Information) [Company-Owned Restaurant Count](index=8&type=section&id=NUMBER%20OF%20COMPANY-OWNED%20RESTAURANTS) As of May 25, 2025, Darden operated a total of 2,159 restaurants, an increase from 2,031 in the prior year, primarily driven by the acquisition of 108 Chuy's locations and net new openings for LongHorn Steakhouse and The Capital Grille Restaurant Count by Brand | Brand | 5/25/2025 | 5/26/2024 | | :--- | :--- | :--- | | Olive Garden | 935 | 920 | | LongHorn Steakhouse | 591 | 575 | | Chuy's | 108 | — | | The Capital Grille | 71 | 66 | | **Total Darden** | **2,159** | **2,031** | [Corporate Information](index=4&type=section&id=Corporate%20Information) Darden will host an investor conference call on June 20, 2025, to discuss its financial results, and the Annual Meeting of Shareholders will be held virtually on September 17, 2025 - The company will host an investor conference call and slide presentation on **June 20, 2025**, at **8:30 am ET**[12](index=12&type=chunk) - The Annual Meeting of Shareholders is scheduled for **September 17, 2025**, in a virtual-only format[11](index=11&type=chunk)

Core Insights - Darden Restaurants, Inc. reported strong financial results for the fourth quarter and fiscal year ended May 25, 2025, with significant growth in sales and earnings, driven by same-restaurant sales increases and acquisitions [1][3][6]. Financial Performance - Fourth Quarter 2025 consolidated sales increased by 10.6% to $3.3 billion, with same-restaurant sales up by 4.6% [2][6]. - Fiscal 2025 total sales rose by 6.0% to $12.1 billion, with same-restaurant sales growth of 2.0% [3][6]. - Reported diluted net earnings per share from continuing operations for Q4 were $2.58, while adjusted diluted net earnings per share were $2.98, reflecting a 12.5% increase [6][19]. - For the fiscal year, reported diluted net earnings per share were $8.88, with adjusted earnings at $9.55, a 7.5% increase [6][19]. Segment Performance - Olive Garden and LongHorn Steakhouse showed strong performance with same-restaurant sales growth of 6.9% and 6.7%, respectively, while Fine Dining experienced a decline of 3.3% [2][3]. - Total segment profit for Olive Garden was $328.4 million in Q4, up from $291.4 million in the previous year [5]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $1.50 per share, a 7.1% increase from the previous quarter [8]. - The company repurchased approximately 0.2 million shares for $51 million during the quarter and authorized a new share repurchase program of up to $1 billion [9]. Future Outlook - For fiscal 2026, the company anticipates total sales growth of 7% to 8%, including approximately 2% growth related to an additional 53rd week [16]. - Same-restaurant sales growth is projected to be between 2% to 3.5%, with plans to open 60 to 65 new restaurants [16].

Core Viewpoint - Darden Restaurants Inc. is expected to report strong fourth-quarter results, with analysts predicting a beat and positive guidance for fiscal year 2026, although some of this may already be reflected in the stock's performance [1][4]. Group 1: Financial Performance Expectations - Analysts from Truist Securities predict Olive Garden's same-store sales (SSS) will rise by 6.5% in the quarter, surpassing the 4.5% consensus and likely exceeding investor expectations [2]. - The fourth-quarter same-store sales estimate has been raised to +4.5% and EPS forecast to $3.02, both above the consensus estimates of +3.6% and $2.96 [3]. - For fiscal year 2026, the blended SSS forecast is increased to +3.8% and EPS to $11.05, up from +3.5% and $10.92 respectively [3]. Group 2: Strategic Focus and Market Position - Darden is likely to reaffirm its long-term goal of a 10%–15% total shareholder return, with a greater emphasis on new store openings rather than margin expansion [2]. - Olive Garden, which accounts for approximately 43% of Darden's sales, is seen as a key driver for the company's performance, benefiting from delivery growth and enhanced marketing efforts [5]. - Analysts maintain a bullish outlook on Darden, with expectations of continued earnings upside into fiscal year 2026 despite the stock's elevated price-to-earnings (P/E) multiple of 21x [4][5]. Group 3: Analyst Ratings and Price Forecasts - Truist Securities analyst Jake Bartlett has reiterated a Buy rating on Darden, raising the price forecast from $230 to $252 [8]. - Oppenheimer analyst Brian Bittner has also reiterated an Outperform rating, adjusting the price forecast from $230 to $250 [8].

Core Insights - Darden Restaurants, Inc. (DRI) is set to report its fourth-quarter fiscal 2025 results on June 20, with earnings per share (EPS) expected to be $2.96, reflecting an 11.7% increase from the previous year [1][8] - Revenue is projected at $3.26 billion, indicating a 10.3% rise compared to the same quarter last year [2][8] Factors Influencing Performance - Darden's fourth-quarter performance is anticipated to benefit from strong brand momentum, strategic menu promotions, and enhanced digital capabilities [3] - Key promotions at Olive Garden, such as the "Buy One, Take One" offer, and seasonal menu items at LongHorn Steakhouse are expected to drive customer traffic [4] - Revenue contributions from Olive Garden and LongHorn Steakhouse are predicted to increase by 6.2% and 9.9% year over year, reaching $1.4 billion and $838 million, respectively [5] Cost Considerations - The partnership with Uber Direct is likely to positively impact performance, with early trends showing check averages approximately 20% higher than traditional to-go orders [6] - However, inflationary pressures, particularly in commodity and labor costs, are expected to affect margins, with an overall inflation rate projected at 3% for the quarter [7] Earnings Prediction - The model indicates a potential earnings beat for Darden, with an Earnings ESP of +0.08% and a Zacks Rank of 3 [8][9]