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Aug 24
Darden Q1 2026 Earnings Report
Darden reported strong Q1 2026 results with revenue and earnings growth driven by higher same-restaurant sales and recent acquisitions.
Key Takeaways
Darden Restaurants exceeded expectations in Q1 2026, reporting higher sales and earnings, largely due to the acquisition of Chuy's and increased performance at Olive Garden and LongHorn Steakhouse.
Revenue rose to $3.0447 billion, a 10.4% increase year-over-year.
Adjusted EPS was $1.97, excluding one-time items such as a gain on the sale of Olive Garden Canada.
Net income reached $257.9 million, driven by solid same-restaurant sales.
Darden repurchased $183 million worth of shares and declared a $1.50 dividend.
Darden
Darden
Darden Revenue by Segment
Darden Revenue by Geographic Location
Revenue by Segment
Olive Garden Revenue
CapyFin.comLongHorn Steakhouse Revenue
CapyFin.comFine Dining Revenue
CapyFin.comOther Business Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Darden updated its FY26 outlook, projecting solid growth in sales and earnings with continued capital investments and a 53rd operating week.
Positive Outlook
- Total sales growth projected at 7.5% to 8.5%
- Same-restaurant sales expected to grow 2.5% to 3.5%
- Adjusted EPS guided to $10.50 to $10.70
- Approximately 65 new restaurant openings planned
- $700–$750 million in capital spending anticipated
Challenges Ahead
- Impact from integration of Chuy’s expected to continue through fiscal year
- Closure of 22 underperforming restaurants affected performance
- Fine Dining segment showed a small decline in same-store sales
- Expected total inflation of 3.0% to 3.5% could pressure margins
- Higher marketing and G&A expenses reported this quarter