Olive Garden said its sales show Americans are growing more hungry for two things: value, and lots of pasta.
Darden Restaurants, Inc. (DRI) Q2 2026 Earnings Call Transcript
Darden Restaurants, Inc. is rated a quality Hold at current ~$200 levels, reflecting fair valuation. DRI's Q2 saw strong 7.3% revenue growth and positive comps across all segments, led by LongHorn Steakhouse and Olive Garden. Margin pressure persists from high commodity costs, with EPS missing by $0.02 despite higher sales and positive guidance.
Darden Restaurants Inc, the owner of Olive Garden and LongHorn Steakhouse, on Thursday raised its full-year sales forecast for the second consecutive quarter after posting stronger-than-expected revenue and earnings, though rising commodity costs continue to weigh on profits. For the second quarter, total sales increased 7.3% to $3.1 billion, driven by a 4.3% same-restaurant sales (SRS) gain and revenue from 30 net new restaurants.
DRI second-quarter EPS missed estimates, but revenues beat on 7.3% sales growth and 4.3% comps, sending shares up 5% in premarket trading.
Darden Restaurants delivered resilient Q2 sales and reaffirmed guidance, despite margin pressure from elevated beef costs. LongHorn and Olive Garden posted strong same-store sales; beef-driven margin compression was most acute at LongHorn, but easing commodity pressures are expected. DRI maintains robust free cash flow, a secure 3.2% dividend, and a disciplined capital return strategy supported by a strong balance sheet.
Although the revenue and EPS for Darden Restaurants (DRI) give a sense of how its business performed in the quarter ended November 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Darden Restaurants (DRI) came out with quarterly earnings of $2.08 per share, missing the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $2.03 per share a year ago.
Darden Restaurants reported higher fiscal second-quarter sales and profit and raised its full-year sales-growth guidance as it shrugged off impacts from soaring beef prices.
Darden Restaurants reported strong demand for Olive Garden and LongHorn Steakhouse. The restaurant company raised its full-year outlook for revenue growth for the second straight quarter.
DRI is set to report Q2 FY26 earnings on Dec. 18. EPS is projected at $2.10, with Olive Garden and LongHorn expected to lead revenue growth amid cost pressure.
Looking beyond Wall Street's top-and-bottom-line estimate forecasts for Darden Restaurants (DRI), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended November 2025.