The exterior of an Olive Garden is seen on June 20, 2025 in Austin, Texas.
Brandon Bell | Getty Images
Darden Restaurants reported on Thursday that its quarterly earnings and revenue narrowly missed analysts’ expectations, driven by a slowdown in same-store sales growth at Olive Garden.
Following the announcement, the company’s shares dropped 5% in premarket trading.
Below are the results for the quarter ended August 30 compared with Wall Street expectations, based on a survey of analysts by LSEG:
- Earnings per share: $2.05 vs. $2.06 expected
- Revenue: $3.20 billion vs. $3.21 billion expected
Darden reported fiscal first-quarter net income of $233.4 million, or $2.04 per share, a decrease from $257.8 million, or $2.19 per share, in the prior year.
Net sales increased by 5.1% to reach $3.20 billion.
Same-store sales grew by 3.1% during the fiscal quarter, with growth recorded across all of Darden’s business segments.
LongHorn Steakhouse emerged as the top performer in the portfolio for the quarter, posting a 6.2% increase in same-store sales. The chain has surpassed Olive Garden to become Darden’s leading performer, despite representing a smaller portion of the company’s total revenue.
Olive Garden reported a modest 1.1% increase in same-store sales. Although it remains the company’s largest chain by both store count and revenue, its growth has weakened as consumers become increasingly selective with their spending.
Darden’s fine-dining segment, which includes brands such as The Capital Grille and Ruth’s Chris, recorded a 1.6% increase in same-store sales.
Same-store sales for the company’s remaining chains, categorized under its “other business” division, grew by 3.8% during the quarter.
Darden reaffirmed its fiscal 2027 forecast. The company expects total sales between $13.60 billion and $13.75 billion, with net earnings per share from continuing operations ranging from $11.10 to $11.35.
