Darden Restaurants, Inc. · DRI · FY2027 Q1 · Calendar Q3 2026

Darden reaffirms FY2027 outlook as brands deliver mixed comp growth

The current evidence is supportive but mixed: Darden delivered 3.2% comparable same-restaurant sales growth and reaffirmed FY2027 EPS guidance, with particularly strong reported momentum at LongHorn and Yard House. Against that, Olive Garden growth was modest, management flagged pricing and cost risks, and the event-session market reaction was negative. The transcript supports a resilient-demand case, but the next test is whether lunch initiatives and unit growth broaden demand without worsening execution or margin pressure.

Reported Before market openNYSEConsumer Cyclical $23.76B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $2.05 Consensus $2.05
EPS surprise 0.0% Reported versus consensus
Reported revenue $3.20B Consensus $3.21B
Revenue surprise -0.2% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -3.0% Event window
SPY move -0.1% Same window
Abnormal move -2.9% Stock minus SPY
Volume 1.7× Versus trailing sessions
Subsequent drift 0.0% Up to 20 sessions
DRISPY benchmark

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Transcript intelligence

What changed

Darden started FY2027 with 3.2% comparable same-restaurant sales growth and reaffirmed FY2027 EPS guidance of $11.10-$11.35. Management emphasized Olive Garden lunch initiatives, menu innovation, Yard House prototype openings and Chuy's expansion; the prior analysis had emphasized broader FY2027 unit growth and approximately $875 million of planned capital spending.

Guidance delta

Maintained: management reaffirmed FY2027 EPS guidance of $11.10-$11.35.

Key takeaways

  • Management reported Q1 FY2027 same-restaurant sales growth of 3.2% on a comparable-calendar basis.
  • LongHorn and Yard House led reported brand comps at 6.8% and 10%, while Olive Garden grew 1%.
  • Management reaffirmed FY2027 EPS guidance of $11.10-$11.35.
  • Menu innovation, promotions, Olive Garden lunch marketing and unit growth remain the main operating levers.

Management priorities

  • Revive Olive Garden lunch marketing and test a new lunch platform in Q2.
  • Continue the smaller Yard House prototype rollout and planned openings.
  • Extend menu innovation and invest in Chuy's expansion and brand consistency.

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Earnings History

Estimate Beat Miss Match
DRI EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q3 '24 estimate $2.62 Q3 '24 actual $2.62, match Q4 '24 estimate $2.61 Q4 '24 actual $2.65, beat Q1 '25 estimate $1.83 Q1 '25 actual $1.75, miss Q4 '25 estimate $2.97 Q4 '25 actual $2.98, match Q1 '26 estimate $2.00 Q1 '26 actual $1.97, miss Q2 '26 estimate $2.10 Q2 '26 actual $2.08, miss Q3 '26 estimate $2.94 Q3 '26 actual $2.95, match Q4 '26 estimate $3.63 Q4 '26 actual $3.66, beat Q1 '27 estimate $2.05 Q2 '27 estimate $2.26 Q3 '27 estimate $3.27 Q4 '27 estimate $3.68
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Analyst Consensus ?

ConsensusBuy59 ratings
Bullish3864.4%
Neutral2033.9%
Bearish11.7%

Analyst 52W Price Targets

$200.84Current
$95Low
$198.28Average
$265High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 8, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Stephens & Co. Equal Weight Equal WeightMaintainSep 25, 2026
Mizuho Outperform OutperformMaintainSep 25, 2026
Guggenheim Buy BuyMaintainSep 25, 2026
Freedom Capital Markets Buy BuyMaintainSep 25, 2026
Citigroup Buy BuyMaintainSep 25, 2026
Show 54 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $200.84. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
BernsteinDanilo Gargiulo$230$206.12 +14.5%Sep 25, 2026
Mizuho SecuritiesNick Setyan$245$207.44 +22.0%Sep 25, 2026
Seaport GlobalEric Gonzalez$240$209.02 +19.5%Sep 16, 2026
OppenheimerAnalyst unavailable$245$218.61 +22.0%Sep 15, 2026
Morgan StanleyAnalyst unavailable$255$209.82 +27.0%Sep 14, 2026
See 138 more

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Company context

Snapshot as of publication

Darden Restaurants, Inc., through its various subsidiaries, focuses on the ownership and operation of full-service dining establishments across both the United States and Canada. As of May 29, 2022, the company's extensive portfolio comprised 1,867 directly managed restaurants. These included a significant presence from its flagship brands: 884 Olive Garden outlets, 546 LongHorn Steakhouse locations, 172 Cheddar's Scratch Kitchens, 85 Yard House venues, 62 Capital Grille branches, 45 Seasons 52 restaurants, 42 Bahama Breeze sites, 28 Eddie V's Prime Seafood establishments, and 3 Capital Burger eateries. In addition to its owned operations, Darden also oversees 60 franchised restaurants, specifically 35 Olive Garden units, 18 LongHorn Steakhouse units, 4 Cheddar's Scratch Kitchens, 2 Capital Grille locations, and 1 Bahama Breeze restaurant. The company, which originated in 1968, is headquartered in Orlando, Florida.

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-09-24T19:11:05.960657+00:00
  2. FN2 earnings calendar · 2026-09-25T01:23:14.171830+00:00
  3. Polygon adjusted daily market bars · 2026-09-25T07:30:57.621347+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-25T07:30:57.618730+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-09-25. For educational purposes only; not investment advice.