Darden to Post Q3 Earnings: Olive Garden, LongHorn in Focus

Core Insights - Darden Restaurants, Inc. (DRI) is set to report its third-quarter fiscal 2026 results on March 19, with earnings per share (EPS) consensus at $2.95, reflecting a 5.4% increase from the previous year [1][2] - The company has a mixed earnings history, having missed the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of negative 0.4% [1][2] Estimate Revisions - The Zacks Consensus Estimate for fiscal third-quarter EPS is $2.95, up from $2.80 in the year-ago quarter [2] - Revenue consensus is projected at $3.33 billion, indicating a 5.3% rise from the previous year's figure [2] Factors Influencing Quarterly Results - Darden's revenue growth is expected to be driven by strong same-restaurant sales across all business segments, particularly from Olive Garden and LongHorn Steakhouse [3] - Olive Garden's success is attributed to its popular Never Ending Pasta Bowl promotion and high guest satisfaction, while LongHorn Steakhouse's growth is linked to food quality and customer experience [4] Additional Revenue Contributors - New restaurant openings and off-premise initiatives, including first-party delivery through Uber Direct, are likely to have supported revenue growth [5] - Promotional events and limited-time menu offerings across various brands have also contributed to increased guest traffic [5] Revenue Projections - Revenue from Olive Garden is expected to rise 2.5% year over year to $1.36 billion, while LongHorn Steakhouse is projected to increase by 7.9% to $828.6 million [6] - Fine dining revenue is anticipated to grow 1.8% year over year to $392.3 million [6] Profitability Insights - The company's profitability may benefit from sales leverage and improved operating efficiency, with productivity gains in restaurant labor offsetting wage inflation [7] - Lower general and administrative expenses are expected to support earnings growth despite commodity inflation pressures, particularly in beef costs [7] Earnings Prediction Model - The model indicates that Darden does not have a strong prediction for an earnings beat this quarter, with an Earnings ESP of +0.08% and a Zacks Rank of 4 (Sell) [9][10]