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7h ago

Darden Misses Q1 Targets, Shares Drop 7.7% as Company Reaffirms Guidance

Management signaled confidence by keeping its profit guidance intact.

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Overview

  • Darden reported fiscal Q1 EPS of $1.97 versus the $2.00 consensus and revenue of $3.004 billion versus the $3.040 billion estimate.
  • The stock fell 7.7% to close at $192.74 on Thursday following the earnings shortfall.
  • The company maintained full-year adjusted EPS guidance at $10.50 to $10.70 and raised its fiscal 2026 sales outlook to $12.983 billion to $13.104 billion.
  • Net income increased 24% to $257.8 million, with year-over-year sales growth supported by a 4.7% blended same-restaurant sales gain and contributions from the Chuy’s acquisition and new openings.
  • Analysts trimmed price targets after the report, including BTIG to $225, TD Cowen to $200, and KeyBanc to $225, while CEO Rick Cardenas called the quarter a strong start.