Darden Restaurants Reports In-Line Q1 Results, Provides Guidance

Darden Restaurants, Inc. (NYSE: DRI), the parent company of popular dining chains like Olive Garden, reported its earnings for the first quarter of fiscal 2026 on September 18, 2025. The company achieved an earnings per share (EPS) of $1.97, slightly below the estimated $2. Despite this, Darden's revenue reached approximately $3.04 billion, surpassing expectations.

The reported EPS of $1.97, although below the Zacks Consensus Estimate, marks an improvement from the $1.75 per share reported in the same quarter last year. This growth indicates a positive trend in Darden's earnings performance. The company's strategic focus and effective execution of competitive advantages have been key drivers of this success, as highlighted by Darden's President and CEO, Rick Cardenas.

Darden's financial metrics provide further insights into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 21.04, reflecting the market's valuation of its earnings. Additionally, the price-to-sales ratio stands at about 1.83, indicating how the market values its revenue. These figures suggest a relatively strong market position.

Despite the earnings miss, Darden has increased its revenue growth forecast for fiscal 2026. The company's enterprise value to sales ratio is around 2.30, and its enterprise value to operating cash flow ratio is approximately 16.29. These ratios provide insights into Darden's valuation relative to sales and cash flow, indicating a solid financial foundation.

However, Darden's debt-to-equity ratio is notably high at approximately 2.57, suggesting a significant reliance on debt financing. The current ratio is around 0.42, indicating the company's ability to cover short-term liabilities with its short-term assets. Despite these challenges, Darden's earnings yield of about 4.75% offers a perspective on the return on investment, highlighting its potential for growth.

• The consensus price target for Darden Restaurants, Inc. (NYSE: DRI) has increased from $200.21 last year to $245.67, indicating a positive shift in analyst expectations.
• Despite a stable consensus price target, Credit Suisse analyst Lauren Siberman sets a more cautious price target of $152, highlighting differing views on Darden's financial health.
• Darden's strategic initiatives, including a focus on core brands and international expansion, aim for a 7-8% revenue growth and a 7% increase in dividends, alongside a new $1 billion buyback authorization.

Darden Restaurants, Inc. (NYSE: DRI) is a major player in the full-service restaurant industry, managing a diverse range of popular brands like Olive Garden and LongHorn Steakhouse. With 1,867 restaurants across the U.S. and Canada, Darden has a strong foothold in the dining sector. Founded in 1968 and based in Orlando, Florida, the company competes with other restaurant chains like Texas Roadhouse.

The consensus price target for Darden has remained stable at $245.67 over the past month and quarter, indicating consistent analyst confidence in the company's short-term performance. However, Credit Suisse analyst Lauren Siberman has set a lower price target of $152, suggesting a more cautious outlook. This discrepancy highlights differing views on Darden's financial health and market position.

The significant increase in the consensus price target from $200.21 last year to $245.67 reflects a positive shift in analysts' expectations for Darden's growth prospects. This optimism is supported by the company's strong sales momentum from Olive Garden and LongHorn, as well as its strategic focus on core brands and international expansion. Despite these positive indicators, challenges like beef inflation and higher leverage compared to peers could impact profitability.

Darden's upcoming first-quarter earnings report is highly anticipated, with investors eager to assess the company's financial health and potential for consistent income generation. The company's recent strong performance, including margin expansion and robust same-store sales, has set high expectations. However, any underperformance in the earnings report could significantly impact the stock, especially given the current economic challenges.

Darden's strategic initiatives, such as closing underperforming concepts and pursuing capital-light franchising, aim to drive incremental growth. The company's guidance projects a 7-8% revenue growth, higher earnings per share targets, and a 7% increase in dividends. Additionally, a new $1 billion buyback authorization reflects management's confidence in Darden's financial health and future prospects.

Darden Restaurants, Inc. (NYSE:DRI) is a prominent player in the restaurant industry, owning popular brands like Olive Garden and LongHorn Steakhouse. As the company prepares to release its quarterly earnings on September 18, 2025, Wall Street analysts estimate an earnings per share (EPS) of $1.99 and revenue of approximately $3.04 billion.

Analysts expect Darden to report an EPS of $2.01, up from $1.75 in the same period last year, as highlighted by the second paragraph. This reflects a 13.7% increase, showcasing the company's growth. Revenue is projected to rise by 10.2% to $3.04 billion, compared to $2.76 billion a year ago. These figures indicate strong performance despite challenges like beef inflation affecting steakhouse margins.

Darden's shares recently experienced a slight decline of 0.6%, trading at $210.83, even after exceeding fourth-quarter expectations. Keybanc analyst Eric Gonzalez maintained an Overweight rating for Darden, adjusting the price target from $245 to $240. This reflects cautious optimism amid economic challenges and high expectations for the upcoming earnings report.

Darden's financial metrics provide insights into its market valuation. With a P/E ratio of 23.44 and a price-to-sales ratio of 2.04, the market values its earnings and revenue favorably. However, the debt-to-equity ratio of 2.57 suggests a higher level of debt, which could impact its financial flexibility. The current ratio of 0.42 indicates potential challenges in covering short-term liabilities.

As Darden approaches its Q1 earnings report, the company must demonstrate resilience in its growth strategy. With leverage higher than its peers and unpredictable input costs, any underperformance could significantly impact the stock. Investors will closely watch the earnings release to gauge the company's ability to navigate the current economic environment.

Darden Restaurants, Inc. (NYSE:DRI) is a prominent player in the restaurant industry, owning well-known brands like Olive Garden and LongHorn Steakhouse. The company operates within the Zacks Retail - Restaurants industry and has shown resilience in a competitive market. Darden's recent financial performance highlights its ability to exceed market expectations, as evidenced by its latest earnings report.

On June 20, 2025, Darden reported earnings per share (EPS) of $2.98, surpassing the estimated $2.96. This marks a significant improvement from the $2.65 EPS reported in the same quarter last year. The earnings surprise for this quarter was 0.68%, as highlighted by Zacks. Despite surpassing consensus EPS estimates only once in the last four quarters, Darden's ability to exceed revenue expectations twice in the same period demonstrates its strong market position.

Darden's revenue for the quarter ending in May 2025 reached $3.27 billion, driven by the acquisition of 103 Chuy's restaurants and the addition of 25 new restaurants, exceeding the Zacks Consensus Estimate by 0.18%. This represents growth from the $2.96 billion reported a year ago. Same-store sales grew by 4.6%, surpassing the StreetAccount estimate of 3.5%.

Following the positive earnings report, Darden's shares increased by over 2% in premarket trading. The company reported a fiscal fourth-quarter net income of $303.8 million, or $2.58 per share, aligning with the previous year's figures. However, when excluding costs associated with the acquisition of Chuy's Tex Mex, Darden's earnings rose to $2.98 per share for the quarter ending May 25.

Darden's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 25.32, while its price-to-sales ratio stands at about 2.27. The enterprise value to sales ratio is around 2.76, and the enterprise value to operating cash flow ratio is approximately 19.48. Darden's earnings yield is about 3.95%, and its debt-to-equity ratio is approximately 2.76. The current ratio of about 0.39 indicates its ability to cover short-term liabilities with short-term assets.

• The consensus price target for Darden Restaurants, Inc. (NYSE:DRI) is $210, indicating stability in analysts' expectations.
• Projected earnings show a 14% increase in earnings per share and a 10% rise in sales year-over-year.
• Despite industry challenges, Darden's revenue for Q3 FY 2025 increased by 6.16% year-over-year, with a 2.6% growth in same-store sales.

Darden Restaurants, Inc. (NYSE:DRI) is a major player in the full-service restaurant industry, with a diverse portfolio that includes popular brands like Olive Garden, LongHorn Steakhouse, and The Capital Grille. The company operates a mix of company-owned and franchised locations across the United States and Canada, making it a significant presence in the North American dining scene.

The current consensus price target for Darden's stock is $210, reflecting stability in analysts' expectations over the past month. This consistency suggests confidence in the company's performance, as highlighted by the unchanged price target from one month ago. However, Credit Suisse analyst Lauren Siberman has set a lower price target of $152, indicating a more cautious outlook.

A year ago, the average price target for Darden was $187.03, showing a notable increase to the current $210. This rise suggests improved sentiment or performance expectations for the company. Despite this, Baird analyst David Tarantino recently lowered his price target from $210 to $192, citing concerns about an economic slowdown and potential tariffs.

Darden's upcoming earnings report is anticipated to show growth, with projected earnings of $2.94 per share on revenue of $3.25 billion. This represents a 14% increase in earnings and a 10% rise in sales compared to the previous year. Such growth could influence analysts' price targets, as earnings reports provide insights into the company's financial health.

Darden's resilience is evident in its robust traffic growth and strategic initiatives, such as partnerships with Uber Direct, which have boosted delivery volume by 40% to 50%. Despite industry challenges, Darden's revenue for Q3 FY 2025 increased by 6.16% year-over-year, with a 2.6% growth in same-store sales, surpassing the industry average. These factors contribute to the positive outlook for the company, as reflected in the various price targets set by analysts.

Truist Securities raised its price target on Darden Restaurants (NYSE:DRI) to $252 from $230 while reiterating a Buy rating, expressing confidence in the company's upcoming fourth-quarter results and fiscal 2026 guidance.

With shares already up over 20% year-to-date—far outpacing the broader market—Truist believes a strong earnings beat and upbeat forward guidance are partially priced in, but still see room for upside. The firm’s proprietary card data suggests Olive Garden same-store sales rose 6.5% in the fourth quarter, topping both the consensus estimate of 4.5% and investor expectations in the 5–6% range.

Looking ahead to fiscal 2026, Truist expects Darden’s guidance to come in above its long-term framework, supported by ongoing sales momentum, expanded delivery adoption, and the benefit of an additional operating week. While the company is likely to maintain its long-term target of a 10–15% total shareholder return, the mix is expected to shift toward new store development rather than margin expansion.

Truist has increased its earnings estimates in line with these trends, resulting in the upward revision of its price target to $252, reflecting continued strength in both operations and strategy execution.

• The expected earnings per share (EPS) for Darden Restaurants, Inc. (NYSE:DRI) is $2.93, with projected revenues of approximately $3.25 billion.
• Analysts have revised the consensus EPS estimate slightly down by 0.3% over the past month, indicating potential investor actions.
• Jefferies analysts have raised Darden's price target to $210 from $165, reflecting confidence in Olive Garden's promotional strategies to boost customer traffic.

Darden Restaurants, Inc. (NYSE:DRI) is a prominent player in the casual dining sector, owning well-known chains like Olive Garden. As the company prepares to release its quarterly earnings on June 20, 2025, analysts are keenly observing its financial performance. The expected earnings per share (EPS) is $2.93, with projected revenues of approximately $3.25 billion.

The anticipated EPS of $2.93 represents a 10.6% increase from the previous year, while revenues are expected to rise by 10.3% to $3.25 billion. Despite this growth, the consensus EPS estimate has been slightly revised down by 0.3% over the past month. Such revisions can signal potential investor actions, as they often correlate with short-term stock price movements.

Jefferies analysts have shown renewed confidence in Darden, raising the company's price target to $210 from $165. This optimism is fueled by Olive Garden's efforts to boost customer traffic, including promotions like the "Buy One Take One" offer, which increased foot traffic by 600 basis points quarter-over-quarter. On Friday, Darden's shares traded at around $217, reflecting positive market sentiment.

Darden's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of about 25, indicating how the market values its earnings. Its price-to-sales ratio is approximately 2.24, while the enterprise value to sales ratio stands at 2.73. These figures suggest how the market values Darden's revenue and overall value relative to its sales.

The company's financial leverage is highlighted by a debt-to-equity ratio of 2.76, while its current ratio of 0.39 indicates its ability to cover short-term liabilities. With an earnings yield of 4.00%, Darden provides insight into the earnings generated per dollar invested. As the earnings release approaches, investors will closely monitor these metrics and the company's performance against expectations.