Darden Reaffirms Fiscal 2027 Outlook After Same-Sales Slowdown
Blended same-restaurant sales rose 3.1% on a fiscal calendar basis as total sales reached $3.2 billion, and the company kept full-year diluted earnings of $11.10 to $11.35.
Darden Restaurants (DRI), the full-service restaurant company, reported blended same-restaurant sales growth of 3.1% on a fiscal calendar basis for the first quarter ended August 30, 2026, down from 4.6% in the fiscal 2026 fourth quarter, after 4.2% in the third quarter. On a comparable calendar that offsets the shift from a 53-week to a 52-week fiscal year, the increase was 3.2%.
Total sales rose 5.1% to $3.2 billion. The prior quarter’s 13.7% sales increase to $3.72 billion included a 53rd week. President and Chief Executive Officer Rick Cardenas said each of the company’s segments delivered positive same-restaurant sales and that the first quarter was a solid start to the fiscal year.
Every reportable brand slowed versus the extra-week fourth quarter. Olive Garden same-restaurant sales were 1.1% on a fiscal calendar basis, or 1.0% on a comparable calendar. LongHorn Steakhouse was 6.2% (6.8% comparable calendar). Fine Dining was 1.6% (1.0% comparable calendar). Other Business was 3.8% (4.5% comparable calendar). Same-restaurant sales exclude Bahama Breeze; all locations are expected to be closed or converted by the fourth quarter of fiscal 2027.
Segment sales were $1.33 billion at Olive Garden, $860.9 million at LongHorn Steakhouse, $304.2 million at Fine Dining, and $705.4 million at Other Business. Segment profit was $270.8 million at Olive Garden, $154.6 million at LongHorn Steakhouse, $39.6 million at Fine Dining, and $111.5 million at Other Business.
Reported diluted net earnings from continuing operations were $2.05 a share, up 4.1% from last year’s adjusted diluted earnings of $1.97 a share. Operating income was $319.3 million. The year-earlier period included a $42.0 million gain on the Olive Garden Canada sale that was excluded from the adjusted comparison.
Company-owned restaurants numbered 2,218 at August 30, 2026, including 953 Olive Garden locations, 624 LongHorn Steakhouse locations, 187 Cheddar’s Scratch Kitchen locations, 112 Chuy’s locations, 95 Yard House locations, 83 Ruth’s Chris Steak House locations, 75 Capital Grille locations, 44 Seasons 52 locations, 32 Eddie V’s locations, 10 Bahama Breeze locations, and 3 Capital Burger locations.
The board declared a quarterly cash dividend of $1.62 a share, payable November 2, 2026, to shareholders of record October 9, 2026. During the quarter, the company repurchased about 1.1 million shares for $222.3 million, inclusive of a 1% excise tax on net repurchases under the Inflation Reduction Act of 2022. That left $1.3 billion remaining under the $1.5 billion authorization issued with the fiscal 2026 fourth-quarter results.
Darden reaffirmed all aspects of its full-year fiscal 2027 outlook, including diluted net earnings from continuing operations of $11.10 to $11.35. Cardenas said the company’s focus remains operating restaurants at a high level, strengthening guest loyalty, investing in people and brands, and deploying capital to support long-term shareholder value.