Darden Restaurants, Inc. (NYSE:DRI) is one of the tech and consumer sector stocks that Jim Cramer talked about. Cramer called it one of the “retail winners,” as he stated: “Retail’s such a huge portion of this economy, it can mask the questionable kinds of transactions we’ve been seeing at the highest level of tech. Consider the retail winners today. There’s Darden, that’s the owner of Olive Garden. It vaulted nearly 2%. Yes, the numbers from Olive Garden look great.” Olive Garden Darden Image: Courtes ...

Darden Restaurants has reported sales growth for its fiscal 2026 (FY2026) second quarter (Q2) and lifted its revenue outlook for the full year. The company’s sales totalled $3.1bn in the three months to 23 November, a 7.3% increase from the prior year. Same-store sales grew 4.3%, supported by gains across major brands. Olive Garden, Darden’s largest chain, recorded a 4.7% rise in same-restaurant sales while LongHorn Steakhouse logged a 5.9% rise. The group’s “other business” segment posted same-store ...

Core Insights - Darden Restaurants, Inc. plans to release its fiscal 2026 second quarter financial results on December 18, 2025, before the market opens [1] - A conference call will follow at 8:30 am ET, where CEO Rick Cardenas and senior management will discuss the results and answer questions [1] Company Overview - Darden Restaurants operates a diverse portfolio of restaurant brands, including Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House, among others [1]

Company Overview - Darden Restaurants, Inc. (DRI) has a market cap of approximately $20 billion and operates over 1,700 restaurants across multiple brands in the U.S. and Canada, including Olive Garden, LongHorn Steakhouse, The Capital Grille, and Cheddar's Scratch Kitchen [1] Stock Performance - DRI shares have underperformed the broader market over the past 52 weeks, rising only 5.1% compared to a 14.5% increase in the S&P 500 Index [2] - Year-to-date, DRI shares are down 5.9%, while the S&P 500 has gained 16.5% [2] - The company has also lagged behind the Consumer Discretionary Select Sector SPDR Fund's 9.9% return over the same period [3] Recent Financial Results - On September 18, DRI shares fell 7.7% after reporting Q1 2026 adjusted EPS of $1.97, which missed Wall Street estimates [4] - Quarterly sales reached $3.04 billion, meeting forecasts, but operating costs surged 8.8% to $2.71 billion due to increased ingredient and marketing expenses [4] - Management raised its annual sales growth outlook to 7.5% - 8.5%, but the midpoint fell slightly below analysts' average expectations, negatively impacting investor sentiment [4] Earnings Expectations - For the fiscal year ending in May 2026, analysts project DRI's adjusted EPS to grow 11.1% year-over-year to $10.61 [5] - The company's earnings surprise history is mixed, with one beat and three misses in the last four quarters [5] - Among 30 analysts covering the stock, the consensus rating is a "Moderate Buy," consisting of 17 "Strong Buy" ratings, two "Moderate Buy," and 11 "Holds" [5] Analyst Ratings - The current analyst configuration is slightly more bullish than three months ago, with 16 "Strong Buy" ratings [6] - On September 19, BMO Capital lowered Darden's price target to $205 while maintaining a "Market Perform" rating [6]

Core Insights - Darden Restaurants, Inc. reported strong financial results for the first quarter of fiscal 2026, with total sales increasing by 10.4% to $3.0 billion, driven by a same-restaurant sales increase of 4.7% and contributions from acquisitions [2][6][7]. Financial Performance - Consolidated sales for Q1 2026 were $3,044.7 million, compared to $2,757.0 million in Q1 2025, reflecting a growth of 10.4% [4]. - Same-restaurant sales growth was reported at 4.7%, with Olive Garden and LongHorn Steakhouse showing increases of 5.9% and 5.5%, respectively [2][4]. - Adjusted diluted net earnings per share from continuing operations increased by 12.6% to $1.97, up from $1.75 in the prior year [7][19]. Segment Performance - Olive Garden generated sales of $1,301.1 million in Q1 2026, with a segment profit of $267.6 million, compared to $1,209.1 million and $250.1 million in Q1 2025 [4]. - LongHorn Steakhouse reported sales of $776.4 million and a segment profit of $134.9 million, up from $713.5 million and $128.4 million, respectively [4]. - The Fine Dining segment experienced a slight decline in profit, with a segment profit of $38.7 million compared to $38.9 million in the previous year [4]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $1.50 per share, payable on November 3, 2025 [5]. - During the quarter, the company repurchased approximately 0.9 million shares for a total of $183 million, with $865 million remaining under the current $1 billion repurchase authorization [8][7]. Future Outlook - The company updated its full-year financial outlook for fiscal 2026, projecting total sales growth of 7.5% to 8.5%, including approximately 2% growth related to the addition of a 53rd week [14]. - Same-restaurant sales growth is expected to be between 2.5% to 3.5%, with plans to open approximately 65 new restaurants [14].

Group 1 - Darden Restaurants, Inc. plans to release its fiscal 2025 fourth quarter financial results on June 20, 2025, before the market opens [1] - A conference call will follow at 8:30 am ET, where CEO Rick Cardenas and senior management will discuss the results and conduct a Q&A session [1] - A replay of the conference call will be available shortly after the live broadcast for those unable to listen [1] Group 2 - Darden operates a diverse portfolio of restaurant brands, including Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House, among others [2] - The company emphasizes its differentiated brands as a key aspect of its business strategy [2]