Darden Restaurants Reports Q1 FY2027 Results: Sales Gain Led by LongHorn While Segment Profit Rises

Darden Restaurants Reports Q1 FY2027 Results: Sales Gain Led by LongHorn While Segment Profit Rises

Mon, October 05, 2026

Darden Restaurants (NYSE: DRI) released its fiscal first-quarter results for the period ended August 30, 2026, reporting a 5.1% increase in total sales to $3.20 billion, and reinforcing confidence in its full-year outlook.

Q1 Financial Highlights

Total quarterly sales rose to $3.20 billion, up from $3.04 billion in the year-earlier quarter. On a blended same-restaurant basis, sales increased 3.1% on a fiscal calendar basis and 3.2% on a comparable calendar basis. LongHorn Steakhouse led the gains with blended same-restaurant sales growth of 6.2% (fiscal calendar) and 6.8% (comparable), while Olive Garden saw a modest gain of 1.1% and 1.0%, and fine dining brands grew by 1.6% and 1.0%, respectively. Other businesses contributed increases of 3.8% and 4.5% across the two metrics. 

The company repurchased approximately 1.1 million shares of common stock during the quarter, spending $222.3 million, leaving about $1.3 billion remaining under its $1.5 billion share repurchase authorization. Darden also declared a quarterly dividend of $1.62 per share, payable on November 2, 2026, to shareholders of record as of October 9, 2026. 

Darden reaffirmed its fiscal 2027 guidance, with projected diluted net earnings per share from continuing operations in a range of $11.10 to $11.35 for the full year. 

Why It Matters

The top-line growth, particularly at LongHorn Steakhouse, underscores Darden’s ability to drive demand in a competitive dining market. Continued stock buybacks and dividend stability signal disciplined capital allocation. By reaffirming its guidance, the company maintains visibility into expected profitability for investors.

What Investors Should Watch

  • Performance in upcoming quarters, especially LongHorn and Olive Garden same-restaurant sales trends.
  • Execution on the remaining $1.3 billion in share repurchases.
  • Any guidance update or adjustment at the midyear point.

Darden’s ability to balance operational momentum with capital returns continues to interest long-term shareholders, particularly as the company enters the midpoint of its fiscal 2027 cycle.