Darden Restaurants, Inc. (DRI) Earnings Call Transcripts

Darden Restaurants, Inc.'s Latest Earnings Call - Q1 FY2027

Darden Restaurants, Inc. reported solid results for the first quarter of fiscal year 2027, with total sales reaching $3.2 billion, up 5.1% year-over-year. Diluted earnings per share increased by 4.1% to $2.05. Management reaffirmed its fiscal 2027 guidance, expecting diluted net earnings per share between $11.10 and $11.35, indicating stability despite external pressures such as the World Cup and consumer concerns regarding lettuce. The company highlighted positive same-restaurant sales across all segments, with LongHorn Steakhouse leading growth at 6.8%.

Reported metrics

Guidance from management

Management reaffirmed its fiscal 2027 guidance for diluted net earnings per share between $11.10 and $11.35, indicating confidence in the company's financial outlook despite external challenges.

What management said

Let me start with the question around the cadence of that. And then if you want to -- if Rick was to jump in about the performance on NEPB, we'll get there. So from a quarter perspective, as I mentioned in my prepared remarks, we actually saw trends improve throughout the quarter. I think on a calendar basis, when we look at August, it was our strongest and September is actually even stronger than that. I don't want ...

And Andrew, on the fuel stuff, yes, we do have -- we do have some variable fuel charge that is depending on where the diesel prices are. We have contemplated some of that into our guidance. But if the prices stay elevated for -- throughout the year, if I have to just quantify at a high level the risk, we're talking about tens of basis points incremental inflation on commodities. But when you think about, as a perce...

What analysts pressed on

Analysts expressed concerns about the impact of external factors such as rising gas prices and inflation on consumer spending. There were questions regarding the potential cannibalization of lunch sales affecting dinner traffic at Olive Garden.

Main topics on the call

• Same-Restaurant Sales Growth — Darden achieved positive same-restaurant sales growth across all segments, with LongHorn Steakhouse leading at 6.8%. Olive Garden's same-restaurant sales grew by 1%, despite challenges from external events. Management no...
• Impact of External Events — The World Cup had a mixed impact on sales, positively affecting Yard House but negatively impacting other brands, resulting in a net negative impact of approximately 80 basis points on same-restaurant sales. Raj Vennam s...
• Olive Garden's Promotions — Olive Garden's promotional strategies, including the return of the Never Ending Pasta Bowl and the introduction of new menu items, have been well-received. Rick Cardenas mentioned, 'We are very pleased with the early res...
• Cost Management — Darden managed to keep restaurant-level EBITDA flat at 18.8% despite inflationary pressures. Management noted that 'restaurant expenses were flat as inflation was offset by pricing,' indicating effective cost control mea...

Read the full Darden Restaurants, Inc. transcript (Q1 FY2027) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 28 Darden Restaurants, Inc. earnings call transcripts on record, spanning March 19, 2020 to September 24, 2026. Based on this history, Darden Restaurants, Inc. reports quarterly. The most recent call on file is dated September 24, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

DRI

Exchange

NYSE

Country

US

Sector

Consumer Discretionary

Industry

Hotels, Restaurants and Leisure

Calls on record

28

First call

March 19, 2020

Most recent

September 24, 2026

Reporting cadence

quarterly