Darden Restaurants Posts Higher 1Q Sales, Profit Slips on Increased Expenses
Dow Jones2026/09/24 11:24By Connor Hart
Darden Restaurants logged higher fiscal first-quarter sales, though profit slipped as operating costs grew at a faster rate.
The company on Thursday posted net earnings of $233.4 million, or $2.04 a share, for its three months ended Aug. 30, compared with $257.8 million, or $2.19 a share, a year earlier.
Stripping out certain one-time items, earnings came in at $2.05 a share, in line with analyst expectations, according to FactSet.
Quarterly sales climbed 5.1% to $3.2 billion, also in line with Wall Street estimates.
Chief Executive Rick Cardenas called the quarter a solid start to the fiscal year, noting that each of Darden's segments delivered positive same-restaurant sales.
Companywide same-restaurant sales rose 3.1%, just below analyst views for a 3.3% increase. Growth was led by a 6.2% jump in comparable sales across its LongHorn Steakhouse brand, while same-restaurant sales across its Olive Garden banner ticked up 1.1%.
Total operating costs and expenses were up 6.5% at $2.88 billion, driven in part by higher costs for food and beverage as well as labor.
Shares fell 5.2%, to $202.51, in premarket trading.
"Looking ahead, our focus remains the same: operate our restaurants at a high level, strengthen guest loyalty, invest in our people and brands, and deploy capital in ways that support long-term shareholder value," Cardenas said.
Darden reaffirmed its full-year outlook, calling for earnings from continuing operations of $11.10 to $11.35 a share. Analysts are looking for $11.29 a share.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
September 24, 2026 07:24 ET (11:24 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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