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. ...

Shares of Darden (NYSE: DRI ) have been an excellent performer over the past year, rallying 30% into Thursday. However, with the stock at an elevated level, there is little room for error, and mixed quarterly earnings sent the stock down ~8% in early trading Thursday. I have been ratingOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or ...

Shares of Darden (NYSE: DRI ) have been an excellent performer over the past year, rallying 30% into Thursday. However, with the stock at an elevated level, there is little room for error, and mixed quarterly earnings sent the stock down ~8% in early trading Thursday. I have been ratingOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or ...

Core Viewpoint - Darden Restaurants, Inc. experienced a nearly 10% decline in share price following weaker-than-expected quarterly earnings and revenue, despite reporting double-digit sales growth driven by acquisitions and steady same-restaurant gains [1] Financial Performance - The company reported first-quarter adjusted earnings per share of $1.97, missing the analyst consensus estimate of $2.00 [1] - Quarterly sales totaled $3.004 billion, falling short of the expected $3.040 billion [1] - Total sales increased by 10.4%, supported by a same-restaurant sales increase of 4.7% and contributions from the acquisition of 103 Chuy's Tex Mex restaurants and 22 net new restaurants [2] Segment Performance - Olive Garden sales reached $1.301 billion, up from $1.209 billion a year ago, with segment profit rising to $267.6 million from $250.1 million [3] - Same-restaurant sales at Olive Garden increased by 5.9%, while LongHorn Steakhouse saw a 5.5% rise; Fine Dining same-restaurant sales decreased by 0.2%, and Other Business grew by 3.3% [2] Cash and Dividend - The company ended the quarter with cash and equivalents of $211 million and inventories valued at $309.6 million [4] - Darden declared a quarterly cash dividend of $1.50 per share, payable on November 3 [4] - During the quarter, approximately 0.9 million shares were repurchased for a total of $183 million, with $865 million remaining under the current $1 billion repurchase authorization [4] Outlook - Darden reaffirmed its fiscal 2026 adjusted EPS guidance at $10.50–$10.70, slightly above the consensus estimate of $10.68 [5] - The fiscal 2026 sales outlook was raised to $12.983 billion–$13.104 billion from a previous range of $12.922 billion–$13.043 billion, compared to the Street estimate of $13.078 billion [5]

Group 1: Market Overview - Pre-market futures are up following a 25 basis points interest rate cut by the Fed, with the Dow up +230 points, S&P 500 up +51, Nasdaq up +287, and Russell 2000 up +30 points [1] - Bond yields have slightly increased, with the 10-year yield at +4.08% and the 2-year yield at +3.55% [1] Group 2: Jobless Claims - Initial Jobless Claims spiked to +264K due to a reporting disruption in Texas, marking the highest week of new claims since October 2021, but fell back to +231K for the last week [2] - Continuing Claims have decreased to 1.920 million, the lowest since May, remaining below 1.94 million for two consecutive weeks [3] Group 3: Manufacturing Index - The Philly Fed Index reported its highest monthly tally since January at +23.2, indicating five up-months and four down-months in 2025, contrasting with the negative Empire State Index of -8.7 for the same month [5] Group 4: Earnings Reports - Darden Restaurants (DRI) reported fiscal Q1 earnings of $1.97 per share, missing estimates by 3 cents, but revenues of $3.04 billion exceeded expectations, up from $2.76 billion a year ago [6] - FedEx (FDX) is expected to report earnings growth of +1.4% with a revenue increase of +0.9%, while Lennar Homes (LEN) faces tough comparisons with expected earnings growth of -45% and revenue decline of -4% [7]

Group 1 - The core viewpoint of the article indicates that Darden Restaurants (DRI.US) experienced a significant stock decline of approximately 10.5%, reaching a new low of $186.9, marking the lowest point in over five months [1] - For the first quarter of fiscal year 2026, Darden reported a revenue increase of 10% year-over-year, totaling $3.04 billion, which met market expectations [1] - The net profit for the quarter was $258 million, with adjusted earnings per share of $1.97, slightly below the market expectation of $2.00 [1] Group 2 - Darden Restaurants has revised its revenue growth forecast for fiscal year 2026 to a range of 7.5% to 8.5%, an increase from the previous forecast of 7% to 8% [1] - The company reaffirmed its adjusted earnings per share forecast for the fiscal year, projecting it to be between $10.5 and $10.7 [1]

Core Insights - Darden Restaurants, Inc. reported first-quarter fiscal 2026 results with earnings missing estimates but revenues exceeding expectations, leading to an 8% decline in stock price during pre-market trading [1] Financial Performance - Adjusted earnings per share (EPS) for the fiscal first quarter were $1.97, below the Zacks Consensus Estimate of $2.00, compared to $1.75 in the prior-year quarter [2] - Total sales reached $3,044.7 million, surpassing the consensus mark of $3,040 million, reflecting a 10.4% increase from the previous year, supported by a 4.7% increase in same-restaurant sales [3] Segment Performance - Sales at Olive Garden increased 7.6% year over year to $1.3 billion, matching estimates, with same-restaurant sales up 5.9% [4] - LongHorn Steakhouse saw an 8.8% year-over-year sales increase to $776.4 million, though below the estimate of $811.5 million, with comps rising 5.5% [5] - Fine Dining segment sales rose 2.7% to $286.5 million, slightly above the estimate of $285 million, but comps fell 0.2% [5] - Other Business segment sales surged 22.5% year over year to $680.7 million, exceeding the estimate of $628.5 million, with comps up 3.3% [6] Operating Costs - Total operating costs and expenses increased 8.8% year over year to $2.7 billion, primarily due to higher food and beverage expenses, labor costs, and marketing expenses, missing the projection of $2.72 billion [7] Balance Sheet - As of August 24, 2025, cash and cash equivalents were $211 million, down from $240 million as of May 25, 2025, while inventories decreased slightly to $309.6 million [8] Future Outlook - For fiscal 2026, Darden raised its total sales growth outlook to 7.5% to 8.5%, including approximately 2% growth related to the 53rd week, with same-restaurant sales growth anticipated between 2.5% to 3.5% [11] - The company plans to open approximately 65 net new restaurants and allocate $700-$750 million for capital spending in fiscal 2026 [12]

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