Both Darden and Starbucks just got cheaper after steep selloffs, but one of them is quietly struggling to fund its own dividend from free cash flow while the other keeps raising payouts and buying back stock.
Darden Restaurants TodayDRIDarden Restaurants$199.42 -7.82 (-3.77%) As of 09/25/2026 03:59 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$169.00▼$229.76Dividend Yield3.25%P/E Ratio19.49Price Target$232.38Add to WatchlistDarden Restaurants' NYSE: DRI late-September post-earnings release price pullback could be a sell-the-news, buy-the-dip event because the strengths were expected.
Darden Restaurants is holding up but appears fairly valued amid macroeconomic pressures. Q1 2027 saw revenue up 5.1% to $3.20B and blended same-restaurant sales rise 3.1%, with Yard House and LongHorn outperforming. Margins were pretty mixed, and frankly, the outlook is underwhelming for growth.
Darden Restaurants, Inc. (DRI) Q1 2027 Earnings Call Transcript
Darden Restaurants NYSE: DRI reported fiscal 2027 first-quarter results that management said met expectations, supported by positive same-restaurant sales across each of its business segments, sales growth from new units and continued strength at LongHorn Steakhouse and Yard House.
Darden Restaurants, Inc. continues to outperform industry peers, leveraging its scale to mitigate inflation and drive solid traffic and sales growth. LongHorn's standout performance, with 6.8% comp sales and 15% profit growth, highlights DRI's operating leverage and margin resilience amid higher beef costs. DRI's robust cash generation supports a secure 3% dividend yield and ongoing buybacks, targeting a total capital return yield of ~6% over the next year.
Darden Restaurants Inc (NYSE:DRI), the owner of Olive Garden and LongHorn Steakhouse, reported a 5.1% rise in quarterly revenue to $3.2 billion, but sales missed Wall Street estimates for its fiscal 2027 first quarter. Revenue rose from $3.04 billion in the same quarter last year, while same-restaurant sales increased 3.1% across Darden's restaurant portfolio.
Darden Restaurants reported weaker-than-expected earnings and revenue. Olive Garden's same-store sales growth has slowed in recent quarters.
The parent of Olive Garden and Longhorn Steakhouse said fiscal first-quarter earnings fell to $233.4 million, or $2.04 a share, from $257.8 million, or $2.19 a share, a year earlier.
Darden Restaurants NYSE: DRI shareholders elected all nine nominees to the company's board of directors and approved each management proposal presented at the company's 2026 annual meeting, according to preliminary voting results announced during the virtual event.
Darden Restaurants Inc (NYSE:DRI) saw stronger aggregate sales momentum through August, prompting Bank of America (BofA) to raise its LongHorn forecast while cutting its Olive Garden estimate. The bank raised its estimate for LongHorn's first-quarter fiscal 2027 same-store sales growth to 6.5% from 4.2%, citing sustained market share gains and stronger category trends.
DRI's fiscal Q1 results face inflation pressures as affordability, restaurant expansion and productivity efforts shape growth expectations.