Darden Restaurants (NYSE:DRI) Releases Earnings Results, Misses Estimates By $0.01 EPS

Darden Restaurants (NYSE:DRI) announced its quarterly earnings results on Thursday. The restaurant operator reported $2.08 earnings per share for the quarter, missing the consensus estimate of $2.09 by ($0.01), Briefing.com reports. The business had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.07 billion. Darden Restaurants had a return on equity of 52.35% and a net margin of 8.90%.The company’s revenue for the quarter was up 7.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.03 EPS. Darden Restaurants updated its FY 2026 guidance to 10.500-10.700 EPS.

Here are the key takeaways from Darden Restaurants’ conference call:

• Darden delivered a strong Q2 with $3.1B in sales (+7% YoY) and company same-restaurant sales up 4.3%, outperforming the industry by roughly 300 basis points with all segments posting positive comps.
• Beef and broader commodity inflation (~5.5% this quarter) were larger-than-expected headwinds, and the company intentionally priced ~130 basis points below inflation, which compressed restaurant-level margins and is likely to pressure results into Q3.
• Olive Garden was a standout with +4.7% comps driven by the Never Ending Pasta Bowl and first‑party delivery (Uber Direct ~4% of sales, ~50% incremental), and the chain is accelerating a systemwide rollout of a lighter portions menu in January.
• LongHorn continued momentum with +5.9% same-restaurant sales, record operational scores and record-low team turnover, while Yard House and Ruth’s Chris drove engagement via successful limited‑time events, underscoring strong brand execution.
• Management updated fiscal 2026 guidance to total sales growth of 8.5%–9.3%, same-restaurant sales 3.5%–4.3%, 65–70 new restaurant openings, CapEx $750M–$775M, and maintained adjusted EPS guidance of $10.50–$10.70 while returning $396M to shareholders this quarter.

Darden Restaurants Price Performance

Shares of DRI stock opened at $192.70 on Friday. The company has a market capitalization of $22.41 billion, a P/E ratio of 20.65, a P/E/G ratio of 1.83 and a beta of 0.66. The company’s 50-day simple moving average is $180.09 and its two-hundred day simple moving average is $198.14. Darden Restaurants has a one year low of $169.00 and a one year high of $228.27. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.40 and a quick ratio of 0.27.

Darden Restaurants Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, February 2nd. Shareholders of record on Friday, January 9th will be given a $1.50 dividend. This represents a $6.00 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Friday, January 9th. Darden Restaurants’s payout ratio is 64.31%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on DRI shares. Stephens reduced their target price on shares of Darden Restaurants from $215.00 to $205.00 and set an “equal weight” rating on the stock in a report on Thursday, December 11th. Deutsche Bank Aktiengesellschaft cut their target price on Darden Restaurants from $239.00 to $220.00 and set a “buy” rating on the stock in a research report on Friday, September 19th. Robert W. Baird dropped their price target on shares of Darden Restaurants from $230.00 to $208.00 and set a “neutral” rating for the company in a research note on Friday, September 19th. Barclays reduced their price objective on shares of Darden Restaurants from $255.00 to $230.00 and set an “overweight” rating on the stock in a research report on Friday, September 19th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Darden Restaurants from $240.00 to $230.00 and set an “overweight” rating for the company in a research note on Monday, October 6th. Nineteen analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $223.39.

Insider Activity

In related news, SVP Matthew R. Broad sold 5,661 shares of the business’s stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $193.40, for a total value of $1,094,837.40. Following the completion of the sale, the senior vice president owned 13,916 shares in the company, valued at approximately $2,691,354.40. The trade was a 28.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.49% of the company’s stock.

Institutional Investors Weigh In On Darden Restaurants

A number of institutional investors and hedge funds have recently bought and sold shares of DRI. Wealth Watch Advisors INC bought a new position in shares of Darden Restaurants during the 3rd quarter worth $39,000. Triumph Capital Management purchased a new stake in Darden Restaurants in the third quarter worth about $48,000. MUFG Securities EMEA plc bought a new position in Darden Restaurants during the 2nd quarter worth about $75,000. Brown Advisory Inc. bought a new position in Darden Restaurants during the 2nd quarter worth about $200,000. Finally, Kestra Investment Management LLC increased its position in Darden Restaurants by 15.4% during the 2nd quarter. Kestra Investment Management LLC now owns 1,091 shares of the restaurant operator’s stock valued at $238,000 after purchasing an additional 146 shares during the period. 93.64% of the stock is owned by institutional investors.

About Darden Restaurants

Darden Restaurants, Inc, together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s Prime Seafood, and Capital Burger brand names.