Darden shares fall after fiscal first-quarter results as Olive Garden sales slow

  • Darden Restaurants reported fiscal first-quarter results and maintained its fiscal 2027 earnings guidance.
  • Darden shares fell 1.4% to $211.42 Thursday after the results.
  • Darden reported $234.3 million in profit, down from $257.9 million a year earlier.

Darden Restaurants shares fell 1.4% to $211.42 on Thursday after the Olive Garden and LongHorn Steakhouse parent reported fiscal first-quarter results marked by higher food and labor costs and slower sales growth at its largest brand. Profit fell about 9% to $234.3 million from $257.9 million a year earlier, while operating expenses increased 7% to $2.88 billion. Adjusted earnings were $2.05 a share on $3.2 billion of revenue, figures the latest account said matched Wall Street consensus, differing from earlier reports that described both metrics as narrowly missing estimates. Companywide comparable sales rose 3.1%, below a 3.3% Wall Street forecast, as LongHorn Steakhouse delivered 6% growth while Olive Garden increased 1.1%, down from 2.4% in the preceding quarter. Darden maintained fiscal 2027 diluted earnings-per-share guidance of $11.10 to $11.35 from continuing operations. The company previously approved a $1.62 quarterly dividend and repurchased roughly 1.1 million shares for about $222.3 million during the quarter.

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