Darden Restaurants posts weaker quarterly results as Olive Garden slows
Darden Restaurants earnings miss as Olive Garden sales slow and revenue falls short See what pressured shares and how LongHorn, guidance, and outlook held up
Darden Restaurants reported quarterly earnings and revenue that missed Wall Street expectations, sending shares lower in premarket trading. The company said slower samestore sales growth at Olive Garden helped weigh on results for the quarter ended Aug. 30.
The restaurant operator said net income fell to $233.4 million, or $2.04 per share, from $257.8 million, or $2.19 per share a year earlier. Revenue rose 5.1% to $3.20 billion, but still came in slightly below analysts’ forecasts.
LongHorn Steakhouse remained Darden’s strongest performer, with samestore sales up 6.2%. Olive Garden’s samestore sales rose 1.1%, while the company said temporary factors such as consumer concerns tied to cyclospora and the World Cup affected traffic. Darden kept its fullyear outlook unchanged, projecting fiscal 2027 sales of $13.60 billion to $13.75 billion and adjusted earnings per share of $11.10 to $11.35.