Darden Restaurants posts mixed quarter, shares react to revenue miss and new buyback

By Daniel Hoffmann, Chart & Technicals desk. Reviewed prior to publication on 2026-06-25, 15:17.

Darden Restaurants (US2371941053) reported fiscal fourth-quarter 2026 earnings on Thursday, with the NYSE-listed group delivering an adjusted EPS beat but a slight revenue miss versus Wall Street expectations, as noted by Investing.com. The owner of Olive Garden and LongHorn Steakhouse saw its shares trade lower in early U.S. session after the release, even as it raised the dividend and authorized a new $1.5 billion share repurchase program.

What the earnings release shows

According to the company’s June 25, 2026 press release, adjusted diluted EPS for the quarter came in at $3.66, three cents above the consensus estimate of $3.63. Reported diluted EPS from continuing operations was $3.54, highlighting modest non-recurring items versus the adjusted figure. Quarterly revenue reached $3.72 billion, just below the roughly $3.73 billion analysts had forecast, a shortfall that drove cautious reactions despite the EPS beat.

Darden’s sales performance was boosted by a 53rd week of operations, lifting total quarterly sales 13.7 percent year-on-year to $3.719 billion. The company cited a 4.6 percent increase in blended same-restaurant sales and contributions from 43 net new locations as additional drivers of the top line. For the full fiscal year ended May 31, 2026, Darden reported total sales of $13.21 billion, an increase of 9.4 percent, with blended same-restaurant sales up 4.5 percent.

Segment trends behind the headline numbers

Investing.com highlighted a mixed picture across Darden’s key brands, with Olive Garden posting same-store sales growth of 2.4 percent against a 3.2 percent expectation. The fine-dining division, including The Capital Grille and Ruth’s Chris Steak House, delivered comparable sales growth of 1.9 percent, shy of the 3.1 percent projected by analysts. These shortfalls contributed to the muted market reaction, despite overall blended same-restaurant sales growth.

LongHorn Steakhouse was the standout performer, generating same-store sales growth of 9.5 percent in the quarter, clearly above the 7.1 percent estimate cited in analyst commentary. That strong momentum underlines resilient demand in the steakhouse segment, even as Olive Garden and fine dining showed more modest expansion. Across the portfolio of 2,202 company-owned restaurants, Darden continues to balance value-oriented casual dining concepts with higher-price fine-dining formats.

Guidance and capital returns for fiscal 2027

Looking ahead, Darden issued its fiscal 2027 outlook with revenue and EPS ranges that compare favorably with consensus forecasts. The company expects total sales between $13.60 billion and $13.75 billion, versus analyst expectations around $13.22 billion. Diluted EPS from continuing operations is projected at $11.10 to $11.35, notably above the consensus level of $10.62 highlighted in market commentary.

The board declared a quarterly cash dividend of $1.62 per share, representing an 8 percent increase from the third quarter of fiscal 2026. The dividend is payable on August 3, 2026 to shareholders of record as of July 10, 2026. In addition, directors authorized a new share repurchase program of up to $1.5 billion with no expiration date, replacing a prior authorization and signaling continued confidence in long-term cash generation.

How analysts are reacting to the stock

Investing.com and Benzinga both pointed to recent analyst moves that frame sentiment around Darden Restaurants shares. Evercore ISI downgraded the stock to In Line from Outperform on June 23, 2026, ahead of the earnings release, reflecting a more cautious stance on near-term upside. In contrast, Guggenheim lifted its price target to $235 from $230 while maintaining a Buy rating, citing the group’s cash-return policy and brand strength.

Aggregated data on MarketBeat shows an average analyst target around the mid-$220 range, implying moderate upside potential versus trading levels near $200. Consensus still broadly anticipates continued EPS growth supported by stable same-restaurant sales and disciplined capital allocation. However, the mixed Q4 print, with modestly underwhelming comps at Olive Garden and fine dining, has introduced a more nuanced tone into short-term recommendations.

The product behind the stock

Darden’s core business model centers on full-service casual dining chains, with Olive Garden as its largest brand offering Italian-inspired dishes such as pasta, soups and salads at accessible price points. LongHorn Steakhouse focuses on steaks and grilled meats in a mid-scale setting, while the Capital Grille and Ruth’s Chris Steak House target higher-income customers with fine-dining experiences. Across these concepts, Darden generates revenue primarily from dine-in meals, complemented increasingly by takeout and digital ordering channels.

Where the shares trade today

Darden Restaurants shares (US2371941053) trade on the NYSE under the ticker DRI and were quoted around $207 in Thursday trading after the results, compared with a prior close of $213.45, according to Investing.com and Benzinga data as of 2026-06-25, 15:00 Eastern time.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or a solicitation of any transaction. All data are based on sources believed to be reliable but may be subject to change. Investors should perform their own research or consult a qualified financial advisor before making investment decisions.