- Darden revised its full-year comparable sales growth forecast upward to a range of 3.5% to 4.3% from the previous 2.5% to 3.5%. The market estimated a 3.19% increase.
- Capital expenditure for the year is expected to be between $750 million and $775 million, slightly increased from the previous forecast of $700 million to $750 million.
- In the second quarter, Darden reported adjusted earnings per share of $2.08, slightly down from the market expectation of $2.10.
- Total sales rose to $3.10 billion, marking a 7.3% increase from the previous year, surpassing the $3.07 billion estimate.
- Olive Garden’s sales were $1.36 billion, showing a 5.4% year-over-year increase, meeting market expectations.
- LongHorn’s sales reached $775.9 million, a 9.3% increase year-over-year, beating the estimated $760.4 million.
- Fine Dining sales increased to $316.2 million, a 3.3% rise from last year, slightly above the $310 million forecast.
- The Other Business segment recorded sales of $647.3 million, an 11% increase year-over-year, just below the $649.6 million estimate.
- Overall comparable sales increased by 4.3%, outperforming last year’s 2.4% increase and exceeding the 2.95% estimate.
- Operating income was $320.4 million, reflecting a 9.7% year-over-year growth, yet below the $329.1 million expected.
- Despite commodity headwinds, Darden managed to enhance value for guests and made strategic investments for long-term growth.
- Analysts have various ratings: 21 buy recommendations, 12 holds, and 2 sells.
Darden Restaurants on Smartkarma
Analysts at Baptista Research on Smartkarma are bullish on Darden Restaurants, highlighting the company’s impressive start to fiscal year 2026. Results have surpassed expectations in sales and earnings, with notable growth in same-restaurant sales and traffic across key segments. Olive Garden, the flagship brand, stood out with a 5.9% sales increase attributed to menu innovations and a successful partnership with Uber Direct for delivery services.
In their research reports, Baptista Research emphasizes Darden Restaurants‘ strong performance in fiscal year 2025 Q4, showcasing growth in same restaurant sales and earnings that exceeded forecasts. The company’s strategic focus on pricing and guest experience has led to market share gains in the casual dining sector, evident in a 4.6% increase in same-restaurant sales for the quarter, surpassing industry averages.
A look at Darden Restaurants Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to the Smartkarma Smart Scores, Darden Restaurants has a promising long-term outlook. With a solid score of 4 for both Dividend and Growth, the company appears to be on track for steady expansion and consistent returns for its investors. Additionally, a score of 3 for both Resilience and Momentum suggests that Darden Restaurants is well-positioned to weather economic fluctuations and maintain a positive trajectory in the market.
Darden Restaurants, Inc. is known for owning and operating various full-service restaurants, with a focus on seafood and Italian cuisine under different brand names. With a widespread presence throughout North America, Darden Restaurants continues to showcase its strength in the dining industry. Investors may find assurance in the company’s above-average scores in key factors, indicating a favorable outlook for the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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