Darden Restaurants (NYSE:DRI) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Darden Restaurants (NYSE:DRI) released its earnings results on Thursday. The restaurant operator reported $2.95 EPS for the quarter, topping analysts’ consensus estimates of $2.94 by $0.01, FiscalAI reports. The firm had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. Darden Restaurants had a return on equity of 52.44% and a net margin of 8.92%.The company’s revenue was up 5.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.80 earnings per share.

Here are the key takeaways from Darden Restaurants’ conference call:

• Darden reported a strong Q3 with $3.3 billion in sales (+5.9%), same-restaurant sales +4.2% (outperforming the industry by 540 basis points), adjusted EPS of $2.95 (+5.4%), and $300 million returned to shareholders.
• Updated fiscal 2026 outlook calls for ~9.5% total sales growth, ~4.5% same-restaurant sales, ~70 net new restaurants, ~4% commodities inflation, and adjusted diluted EPS of $10.57–$10.67 (includes ≈$0.25 from a 53rd week); Q4 implied SRS 3.5%–5% and EPS $3.59–$3.69.
• Olive Garden momentum — Q3 same-restaurant sales +3.2%; completed rollout of a lighter-portion menu that has raised frequency and value scores, extended Buy One, Take One promotion, and saw off‑premise mix increase (delivery ~4.7%, total off‑premise ~29%), with modest mix/margin impact.
• LongHorn delivered outsized results with Q3 same-restaurant sales +7.2% (traffic +3.3%) driven by quality and culture, though elevated beef costs remain a headwind to commodity inflation and margins.
• Portfolio & forward planning — completed Bahama Breeze review (14 permanent closures, 14 conversions with most managers retained), and management expects FY27 activity of 75–80 new restaurants plus the 14 conversions with ~ $850M capex planned.

Darden Restaurants Stock Up 1.6%

DRI stock opened at $203.96 on Friday. Darden Restaurants has a one year low of $169.00 and a one year high of $228.27. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.26 and a current ratio of 0.39. The firm’s fifty day moving average is $208.08 and its 200 day moving average is $194.68. The firm has a market cap of $23.48 billion, a PE ratio of 21.38, a P/E/G ratio of 1.95 and a beta of 0.61.

Darden Restaurants Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 1st. Investors of record on Friday, April 10th will be given a dividend of $1.50 per share. This represents a $6.00 annualized dividend and a yield of 2.9%. The ex-dividend date is Friday, April 10th. Darden Restaurants’s dividend payout ratio (DPR) is currently 62.89%.

Key Stories Impacting Darden Restaurants

Here are the key news stories impacting Darden Restaurants this week:

• Positive Sentiment: Company raised its full‑year revenue and adjusted EPS outlook and reiterated capital returns, which supports investor confidence and upside potential. Reuters: Darden raises annual sales forecast
• Positive Sentiment: Q3 results: adjusted EPS roughly in line ($2.95) and revenues (~$3.35B) up ~5.9% YoY — modestly better than expectations on a reported basis, with comps helped by LongHorn and new restaurants. These operational beats underpin the stock’s resilience. PR Newswire: Q3 results & press release
• Positive Sentiment: Darden declared a $1.50 quarterly dividend (ex‑dividend April 10), reinforcing the yield/cash‑return story that supports demand from income‑oriented investors. PR Newswire: Dividend announcement
• Positive Sentiment: Brand-level strength: LongHorn Steakhouse led comps, and systemwide same‑store sales and unit growth were bright spots — a tangible growth driver for revenue and margin recovery. WSJ: Sales rise boosted by LongHorn
• Neutral Sentiment: Analyst reaction is mixed: some firms reaffirm ratings (Stephens kept an equal‑weight $205 PT) while others adjusted forecasts — overall tone is cautiously constructive but not uniformly bullish. Benzinga: analyst forecast changes
• Negative Sentiment: GAAP results were weighed by one‑time impairments and the wind‑down of Bahama Breeze locations; those charges cloud near‑term comparability and prompted the early pullback after the release. MarketBeat: Q3 earnings and impairments

Insider Activity

In related news, insider Todd Burrowes sold 7,103 shares of Darden Restaurants stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $207.12, for a total value of $1,471,173.36. Following the completion of the transaction, the insider owned 44,252 shares in the company, valued at $9,165,474.24. The trade was a 13.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Susan M. Connelly sold 2,635 shares of the company’s stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $207.36, for a total value of $546,393.60. Following the completion of the transaction, the senior vice president directly owned 4,098 shares of the company’s stock, valued at $849,761.28. The trade was a 39.14% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 18,770 shares of company stock worth $3,948,970. 0.49% of the stock is currently owned by insiders.

Institutional Trading of Darden Restaurants

Several institutional investors have recently bought and sold shares of the business. First Trust Advisors LP lifted its position in shares of Darden Restaurants by 3.3% during the 2nd quarter. First Trust Advisors LP now owns 80,001 shares of the restaurant operator’s stock valued at $17,438,000 after buying an additional 2,553 shares in the last quarter. Brown Advisory Inc. purchased a new stake in Darden Restaurants in the 2nd quarter worth $200,000. Cresset Asset Management LLC raised its position in Darden Restaurants by 3.2% during the second quarter. Cresset Asset Management LLC now owns 2,424 shares of the restaurant operator’s stock worth $529,000 after acquiring an additional 76 shares during the period. Cerity Partners LLC raised its position in Darden Restaurants by 15.7% during the second quarter. Cerity Partners LLC now owns 19,045 shares of the restaurant operator’s stock worth $4,151,000 after acquiring an additional 2,581 shares during the period. Finally, Daiwa Securities Group Inc. lifted its holdings in Darden Restaurants by 5.9% during the second quarter. Daiwa Securities Group Inc. now owns 18,183 shares of the restaurant operator’s stock valued at $3,964,000 after purchasing an additional 1,012 shares in the last quarter. 93.64% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

DRI has been the subject of a number of recent research reports. TD Cowen reissued a “hold” rating on shares of Darden Restaurants in a research report on Friday, December 19th. Bank of America upped their price objective on shares of Darden Restaurants from $261.00 to $262.00 and gave the company a “buy” rating in a report on Monday. UBS Group reiterated a “buy” rating and issued a $230.00 price objective on shares of Darden Restaurants in a research note on Tuesday, March 10th. Weiss Ratings raised shares of Darden Restaurants from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, January 12th. Finally, Melius Research raised shares of Darden Restaurants from a “hold” rating to a “buy” rating in a report on Friday, January 23rd. Twenty equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $224.63.

Darden Restaurants Company Profile

Darden Restaurants, Inc is a multi-brand, full-service restaurant company headquartered in Orlando, Florida. The company owns and operates a portfolio of casual and fine-dining concepts that together serve millions of guests through company-owned and franchised locations. Its well-known brands include Olive Garden and LongHorn Steakhouse, alongside other dining concepts that span Italian, American, steakhouse and upscale casual formats.

Darden’s restaurants provide a range of guest-facing services including dine-in, takeout, delivery and catering, and feature menus tailored to each brand’s positioning—Italian-American fare at Olive Garden, steaks and grilled items at LongHorn, and more premium steakhouse and chef-driven offerings at its upscale concepts.