Darden’s first quarter of 2026 was defined by higher same-store sales across its core brands and effective menu initiatives, with results that met Wall Street’s expectations and a stable market reaction. Management highlighted the impact of Olive Garden’s new lighter portion menu and LongHorn Steakhouse’s strong operational standards as key contributors. CEO Rick Cardenas credited outperformance versus the broader industry to “exceptional guest experiences enabled by historically high team member and manager retention levels,” while noting that winter weather disruptions temporarily affected sales in January. Despite cost pressures from higher beef prices, the company maintained healthy traffic and guest satisfaction metrics across its portfolio.
Is now the time to buy DRI? Find out in our full research report (it’s free for active Edge members).
Darden (DRI) Q1 CY2026 Highlights:
- Revenue: $3.35 billion vs analyst estimates of $3.33 billion (5.9% year-on-year growth, in line)
- Adjusted EPS: $2.95 vs analyst estimates of $2.94 (in line)
- Adjusted EBITDA: $578.7 million vs analyst estimates of $581.2 million (17.3% margin, in line)
- Management slightly raised its full-year Adjusted EPS guidance to $10.62 at the midpoint
- Operating Margin: 12.1%, down from 13.2% in the same quarter last year
- Locations: 2,196 at quarter end, up from 2,165 in the same quarter last year
- Same-Store Sales rose 4.2% year on year (0.7% in the same quarter last year)
- Market Capitalization: $23.22 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Darden’s Q1 Earnings Call
- Brian Bittner (Oppenheimer) asked how Darden is sustaining same-store sales growth despite tougher comparisons; CFO Rajesh Vennam explained that ongoing menu initiatives and extended promotions like Buy One Take One underpin the guidance.
- David Palmer (Evercore ISI) questioned the gap between LongHorn and Olive Garden’s performance; CEO Rick Cardenas cited LongHorn’s quality execution and strategic underpricing of beef as key factors, with brand-specific strategies influencing results.
- Christine Cho (Goldman Sachs) inquired about beef cost trends and menu mix; Vennam described improved fixed-price coverage for beef and noted that lighter portion menu items are driving increased frequency and value perceptions.
- Jon Tower (Citi) sought updates on Olive Garden’s delivery performance and potential for lighter portion menus at other brands; Cardenas indicated delivery mix growth and highlighted that portion flexibility is already present at LongHorn and Ruth’s Chris.
- Lauren Silberman (Deutsche Bank) asked about the impact of gas prices on consumer behavior; Cardenas responded that gas price spikes have limited sustained impact on restaurant spending, with GDP being a more significant traffic driver.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the impact of pricing alignment with inflation on margins and guest traffic, (2) the continued uptake and guest response to new menu platforms like lighter portions at Olive Garden, and (3) the execution of new restaurant openings and Bahama Breeze conversions. Successful management of commodity cost pressures and investment in digital and operational initiatives will also be important indicators of Darden’s ability to sustain growth.
Darden currently trades at $201.68, in line with $200.71 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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