Group 1 - Darden Restaurants reported first-quarter earnings of $1.97 per share, missing the analyst consensus estimate of $2.00 per share [1] - Quarterly sales were $3.004 billion, which also fell short of the analyst consensus estimate of $3.040 billion [1] - Darden's President & CEO Rick Cardenas noted a strong start to the fiscal year with same-restaurant sales and earnings growth exceeding expectations [1] Group 2 - Darden reaffirmed its fiscal 2026 adjusted EPS guidance at $10.50–$10.70, compared to the $10.68 consensus estimate [2] - The company raised its fiscal 2026 sales outlook to $12.983 billion–$13.104 billion from a previous range of $12.922 billion–$13.043 billion, against the $13.078 billion Street estimate [2] - Following the earnings announcement, Darden shares fell 7.7% to close at $192.74 [2] Group 3 - BTIG analyst Peter Saleh maintained a Buy rating on Darden but lowered the price target from $235 to $225 [7] - TD Cowen analyst Andrew M. Charles maintained a Hold rating and cut the price target from $235 to $200 [7] - Keybanc analyst Eric Gonzalez maintained an Overweight rating while lowering the price target from $240 to $225 [7]

Group 1 - Darden Restaurants reported first-quarter earnings of $1.97 per share, missing the analyst consensus estimate of $2.00 per share [1] - Quarterly sales were $3.004 billion, which also fell short of the analyst consensus estimate of $3.040 billion [1] - Darden's President & CEO Rick Cardenas noted a strong start to the fiscal year with same-restaurant sales and earnings growth exceeding expectations [1] Group 2 - Darden reaffirmed its fiscal 2026 adjusted EPS guidance at $10.50–$10.70, compared to the $10.68 consensus estimate [2] - The company raised its fiscal 2026 sales outlook to $12.983 billion–$13.104 billion from a previous range of $12.922 billion–$13.043 billion, against the $13.078 billion Street estimate [2] - Following the earnings announcement, Darden shares fell 7.7% to close at $192.74 [2] Group 3 - BTIG analyst Peter Saleh maintained a Buy rating on Darden but lowered the price target from $235 to $225 [7] - TD Cowen analyst Andrew M. Charles maintained a Hold rating and cut the price target from $235 to $200 [7] - Keybanc analyst Eric Gonzalez maintained an Overweight rating while lowering the price target from $240 to $225 [7]

All right, two minutes before we get to the final opening bell of the week. Let's get in a mad dash. >> What do you do with the best restaurant company.Uh, Olive Garden. Fantastic margins. They do have a long, you know, you know, this long run.It's not doing so much steak. >> Yeah. >> But I would tell you this thing went down hard on a miss.3% yield. It is still the flagship. I think it can come back.It can come back, but you have to have some dimmunition in food prices because there's certainly no there's ...

Group 1 - Olive Garden is recognized as a leading restaurant company with strong margins, but it has recently faced challenges leading to a decline in performance [1] - There is a concern about demand destruction in the food industry, particularly related to high steak prices affecting consumer choices [2] - The liquor market is experiencing a decline in prices, attributed to reduced consumption, which may impact overall sales in the beverage sector [3] Group 2 - Beer sales are being affected, with a notable shift in consumer preferences, indicating a potential change in the beverage landscape [4] - The rise of mocktails suggests a changing trend in consumer behavior towards non-alcoholic options, which could influence future market dynamics [4]

Core Viewpoint - Darden Restaurants, Inc. is facing mixed sentiments ahead of its fiscal 2026 first-quarter earnings report, with a recommendation to buy shares cautiously before the results are announced [1][2]. Group 1: Company Overview - Darden Restaurants, Inc. operates a network of full-service restaurants in the U.S. and Canada, owning popular brands such as Olive Garden and LongHorn Steakhouse [2]. - The company has a history of strong financial performance, with recent quarters showing consistent results [2]. Group 2: Market Sentiment and Recommendations - Jim Cramer noted that the restaurant sector has recently fallen out of favor, suggesting a cautious approach to investing in Darden [1]. - Cramer advised potential investors to consider buying shares of Olive Garden ahead of the earnings report, with a strategy to increase holdings if the stock price declines post-results [1]. - The company is recognized for its solid dividend, which adds to its appeal despite the unpredictability in the restaurant industry [1]. Group 3: Future Outlook - Darden's management provided a positive full-year forecast during a recent conference call, indicating confidence in the company's future performance [2]. - CEO Rick Cardenas introduced a new five-year plan that was well-received, suggesting a strategic direction that could enhance long-term growth [2].

Darden Restaurants is seeing sales grow in the face of spiking food costs.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.The company, which owns chains that include Olive Garden and Longhorn Steakhouse, posted qua ...

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Core Insights - Darden Restaurants, Inc. shares declined by 10% following fiscal first-quarter results that fell short of analyst expectations, despite maintaining full-year guidance that was slightly above consensus estimates [1] Financial Performance - Adjusted earnings for the quarter ending August 24 were reported at $1.97 per share, below the expected $2.00 [1] - Revenue increased by 10.4% to $3 billion, but did not meet the forecast of $3.04 billion [1] Same-Restaurant Sales - Same-restaurant sales rose by 4.7% across Darden's brands, with Olive Garden leading at a 5.9% increase and LongHorn Steakhouse at 5.5% [2] - The Fine Dining segment experienced a slight decline of 0.2%, while the Other Business segment, which includes the recently acquired Chuy's Tex Mex, saw a growth of 3.3% [2] Future Guidance - Management reaffirmed full-year earnings guidance of $10.50 to $10.70 per share, with the high end slightly above the consensus estimate of $10.69 [2] - For fiscal 2026, Darden projected sales growth of 7.5% to 8.5%, including approximately 2% from an extra 53rd week, same-restaurant sales growth of 2.5% to 3.5%, and around 65 new restaurant openings [3]

Core Viewpoint - Darden Restaurants, Inc. reported its Q1 fiscal 2026 earnings, achieving an EPS of $1.97, slightly below expectations, but revenue of approximately $3.04 billion exceeded forecasts, indicating a positive trend in earnings performance [1][2][6] Financial Performance - The reported EPS of $1.97 shows an improvement from $1.75 in the same quarter last year, reflecting a positive growth trend in earnings [2][6] - Revenue reached approximately $3.04 billion, surpassing expectations and indicating strong operational performance [1][4][6] Market Valuation - Darden's P/E ratio is approximately 21.04, suggesting a strong market valuation of its earnings [3][6] - The price-to-sales ratio stands at about 1.83, indicating how the market values its revenue [3] Financial Ratios - The enterprise value to sales ratio is around 2.30, and the enterprise value to operating cash flow ratio is approximately 16.29, indicating a solid financial foundation [4] - Darden's debt-to-equity ratio is notably high at approximately 2.57, suggesting significant reliance on debt financing [5] - The current ratio is around 0.42, indicating the company's ability to cover short-term liabilities with its short-term assets [5] Growth Outlook - Despite the earnings miss, Darden has increased its revenue growth forecast for fiscal 2026, reflecting confidence in future performance [4] - The earnings yield of about 4.75% highlights the potential for growth and return on investment [5]

The restaurant is offering a "lighter portion†section of its menu in an attempt to drive more customer traffic. ...