For the fiscal first quarter ended August 30, Darden's earnings per share were $2.05, slightly below the expected $2.06, while revenue reached $3.20 billion, just shy of the $3.21 billion forecast. The company's net income decreased to $233.4 million from $257.8 million a year earlier.
Although net sales increased by 5.1%, same-store sales growth was only 3.1%, with LongHorn Steakhouse emerging as the top performer with a 6.2% increase in same-store sales, surpassing Olive Garden, which only saw a 1.1% rise. This slowdown at Olive Garden, the largest chain by sales and locations, indicates a shift in consumer spending habits.
Darden's fine-dining segment reported a modest 1.6% growth, while its other chains achieved a 3.8% increase. The company maintained its fiscal 2027 forecast, projecting total sales between $13.60 billion and $13.75 billion and earnings per share from continuing operations in the range of $11.10 to $11.35