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yesterday

Darden Shares Drop After Q1 Miss as Profit Outlook Holds and Sales Target Rises

A small earnings miss overshadowed management’s confidence shown by steady EPS guidance alongside a higher sales outlook.

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Overview

  • The restaurant operator posted fiscal Q1 EPS of $1.97 on revenue of $3.004 billion, missing consensus estimates of $2.00 and about $3.04 billion.
  • Net income rose 24% to $257.8 million and sales grew 10.4% year over year, supported by a 4.7% blended same-restaurant sales gain and the addition of 103 Chuy’s locations plus 22 net new restaurants.
  • Shares fell 7.7% to close at $192.74 after the report.
  • Management reaffirmed full‑year adjusted EPS guidance of $10.50 to $10.70 and lifted its fiscal 2026 sales outlook to $12.983 billion to $13.104 billion.
  • Analysts trimmed price targets but kept existing ratings, including BTIG to $225 (Buy), KeyBanc to $225 (Overweight), and TD Cowen to $200 (Hold).