$DRI · DARDEN RESTAURANTS INC

Darden Restaurants reported Q1 FY2027 results with total sales of $3.2 billion (+5.1% YoY) and blended same-restaurant sales up 3.1%. Diluted EPS from continuing operations was $2.05, compared to $2.19 reported and $1.97 adjusted in the prior year. The company reaffirmed its full-year FY2027 EPS outlook of $11.10–$11.35, declared a $1.62 quarterly dividend, and repurchased $222.3 million in stock during the quarter.

Extended-hours trading shows DRI at $205.67, down 3.80% from the regular-session close of $213.79. The selloff suggests the market is disappointed despite the guidance reaffirmation — likely driven by the EPS miss versus consensus expectations and Olive Garden's weak +1.1% same-restaurant sales.

Darden is the largest full-service restaurant operator in the U.S.; a 3.8% after-hours drop on mixed segment performance signals investor concern that Olive Garden weakness may offset LongHorn's steak

Darden's mixed results mirror broader full-service dining pressures: LongHorn's +6.2% comp outperformance contrasts with Olive Garden's tepid +1.1%, highlighting the bifurcation between value-oriented and premium casual dining. Peer Texas Roadhouse (TXRH) has also shown stronger steakhouse momentum.

Olive Garden, the largest segment at $1.33B in quarterly sales, posted just +1.1% same-restaurant sales — the weakest in the portfolio — raising concerns about traffic at the core brand. Operating income fell to $319.3M from $339.2M a year ago, with restaurant labor costs rising to $1.03B from $988M