From Alphastreet - Earnings Decoded. Market Intelligence Delivered · Staff Editor 2 · · 1m 10s
Darden's Q1 earnings test restaurant sector strength
The casual dining giant reports September 24 with investors watching pricing power and foot traffic trends.
In brief
The casual dining giant reports September 24 with investors watching pricing power and foot traffic trends. Darden's ability to raise menu prices without losing customers will signal whether full-service restaurants can sustain profitability amid economic uncertainty. Originally reported by Alphastreet - Earnings…
Darden reports earnings September 24
The casual dining giant with over 2,000 locations including Olive Garden and LongHorn Steakhouse will announce Q1 fiscal 2027 results before market open.
Analysts expect 5.33% revenue growth
Wall Street forecasts earnings of $2.05 per share and $3.21 billion in revenue, driven by new restaurant openings and selective menu price increases.
LongHorn thrives, Olive Garden struggles
LongHorn Steakhouse shows strong momentum with high-value offerings, while Olive Garden faces traffic headwinds from price-sensitive lower-income diners.
Q4 beat expectations by 23%
Darden reported adjusted earnings per share of $3.66, up 23% year-over-year, with same-store sales growth of 4.6% and LongHorn leading at 9.5%.
“Several of our brands enjoyed record performance on Mother's Day, including the highest-ever traffic day at Olive Garden and LongHorn Steakhouse.”
Stock up 14% year-to-date
Darden shares trade at $215 ahead of earnings, having gained nearly 14% since the start of the year as investors bet on the company's pricing strategy.
The bottom line
Darden's ability to raise menu prices without losing customers will signal whether full-service restaurants can sustain profitability amid economic uncertainty.
