Core Viewpoint - Darden Restaurants, Inc. (DRI) is set to report its second-quarter fiscal 2026 results on December 18, 2025, with expectations of improved earnings and revenue compared to the previous year [1][3]. Financial Performance - In the last reported quarter, DRI's earnings missed the Zacks Consensus Estimate by 1.5% but showed a year-over-year growth of 12.6%. Revenues slightly exceeded the consensus by 0.2%, increasing 10.4% year over year [1]. - The Zacks Consensus Estimate for the upcoming quarter's earnings per share (EPS) is $2.10, reflecting a 3.5% improvement from $2.03 in the same quarter last year. Revenue is projected at $3.08 billion, indicating a 6.7% rise from the previous year [3]. Factors Influencing Performance - Darden's second-quarter performance is anticipated to benefit from menu innovation, targeted value initiatives, and enhanced digital and off-premise capabilities. Investments in prototype optimization and new restaurant formats, along with the expansion of first-party delivery through Uber Direct, are expected to support traffic and sales [4][7]. - Strong brand momentum at Olive Garden, driven by focused menu strategies and successful marketing campaigns, is likely to contribute positively to traffic. LongHorn Steakhouse is also expected to maintain strong sales momentum due to consistent food quality and disciplined execution [5][6]. Revenue Contributions - Revenue contributions from core casual dining brands, particularly Olive Garden and LongHorn Steakhouse, are projected to rise by 3.3% to $1.34 billion and 5.7% to $750.7 million, respectively. However, revenues from fine dining are expected to decline by 1.3% to $302 million [6]. Cost Pressures - Darden is likely to face margin pressures due to inflationary headwinds, primarily from higher commodity costs, especially beef. The management has updated its inflation outlook to 3%-3.5%, with commodity inflation at 3%-4% [8][9]. Earnings Prediction - The model indicates that Darden does not conclusively predict an earnings beat for the upcoming quarter, with an Earnings ESP of -1.58% and a Zacks Rank of 3 [10][11].