Overview
- Darden posted Q2 net income of $237.2 million and adjusted EPS of $2.08, a penny below consensus, on revenue of $3.102 billion up 7.3% with same-restaurant sales up 4.3%.
- The company now guides fiscal 2026 total sales growth to 8.5%–9.3% including a 53rd week of about 2%, and reaffirmed adjusted EPS of $10.50–$10.70.
- Olive Garden and LongHorn led the quarter with same-restaurant sales gains of 4.7% and 5.9%, helped by value offers such as Olive Garden’s Never Ending Pasta Bowl.
- Management flagged elevated beef costs persisting into Q3 with potential relief in Q4, noted improving pricing trends, and said lighter-portion options help address shifting consumption patterns tied to GLP-1 usage, especially lower alcohol demand.
- The board declared a $1.50 quarterly dividend and the company repurchased about 1.1 million shares for $222 million, leaving $643 million under its $1 billion authorization.