Darden Restaurants’ Upcoming Q1 Earnings Preview

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.

Darden Restaurants (NYSE:DRI) saw its stock gain 6% intra-day today after reporting third-quarter earnings, with steady sales growth and strong holiday performance, despite slightly missing analyst expectations.

For the quarter, adjusted earnings per share came in at $2.80, just below the $2.81 consensus estimate. Revenue reached $3.2 billion, falling short of the projected $3.22 billion, though total sales increased 6.2% year-over-year, driven by a 0.7% rise in same-restaurant sales and the acquisition of 103 Chuy’s locations.

Among its core brands, Olive Garden posted 0.6% same-restaurant sales growth, while LongHorn Steakhouse led with a 2.6% increase, reflecting continued consumer demand across its portfolio.

Looking ahead, Darden slightly adjusted its full-year fiscal 2025 outlook, now forecasting adjusted EPS between $9.45 and $9.52, in line with the $9.48 analyst consensus. Total sales are expected to reach approximately $12.1 billion for the year.

Darden pointed to record-breaking sales during key holiday periods, including Valentine’s Day, reinforcing its ability to navigate a competitive restaurant landscape while maintaining steady long-term growth.

Darden Restaurants, Inc. (NYSE:DRI) is a prominent player in the restaurant industry, known for its popular chains like Olive Garden and LongHorn Steakhouse. The company operates a diverse portfolio of dining brands, catering to a wide range of customer preferences. Darden competes with other major restaurant groups, striving to maintain its market position through strategic growth and customer loyalty.

On March 20, 2025, DRI reported earnings per share (EPS) of $2.80, aligning with analysts' expectations. The company's revenue for the quarter was approximately $3.16 billion, slightly below the estimated $3.21 billion. Despite meeting EPS expectations, Darden's revenue fell short, reflecting challenges in same-restaurant sales performance.

Darden's fiscal 2025 third-quarter results highlighted a net income increase to $323.4 million, or $2.74 per share, up from $312.9 million, or $2.60 per share, the previous year. Excluding acquisition costs related to Chuy's, EPS was $2.80. This indicates a stable profit performance, even as revenue growth faced hurdles.

The company's same-store sales growth was only 0.7%, missing the anticipated 1.7% increase. Olive Garden and LongHorn Steakhouse, typically strong performers, reported disappointing same-store sales growth, with Olive Garden's sales rising just 0.6%. This underperformance contributed to a nearly 1% drop in Darden's shares during premarket trading.

Despite these challenges, Darden's total sales and segment profit margins experienced growth, with several brands achieving record sales during the holiday season and Valentine's Day. This underscores the strength of Darden's business model and strategy, as emphasized by CEO Rick Cardenas. The company also declared a quarterly dividend and updated its financial outlook for fiscal 2025.

Darden Restaurants (NYSE:DRI) saw its stock gain 6% intra-day today after reporting third-quarter earnings, with steady sales growth and strong holiday performance, despite slightly missing analyst expectations.

For the quarter, adjusted earnings per share came in at $2.80, just below the $2.81 consensus estimate. Revenue reached $3.2 billion, falling short of the projected $3.22 billion, though total sales increased 6.2% year-over-year, driven by a 0.7% rise in same-restaurant sales and the acquisition of 103 Chuy’s locations.

Among its core brands, Olive Garden posted 0.6% same-restaurant sales growth, while LongHorn Steakhouse led with a 2.6% increase, reflecting continued consumer demand across its portfolio.

Looking ahead, Darden slightly adjusted its full-year fiscal 2025 outlook, now forecasting adjusted EPS between $9.45 and $9.52, in line with the $9.48 analyst consensus. Total sales are expected to reach approximately $12.1 billion for the year.

Darden pointed to record-breaking sales during key holiday periods, including Valentine’s Day, reinforcing its ability to navigate a competitive restaurant landscape while maintaining steady long-term growth.