Darden Restaurants, Inc. reported fiscal third‑quarter 2026 results on March 19 2026, posting revenue of $3.345 billion, a 5.9% year‑over‑year increase that surpassed the consensus estimate of $3.33 billion. The company’s same‑restaurant sales growth, driven by Olive Garden and LongHorn Steakhouse, exceeded industry benchmarks, helping to offset the impact of winter weather that temporarily closed more than 40% of restaurants in January.
GAAP earnings per share were $2.68, falling short of the $2.95 consensus by $0.27, while adjusted EPS of $2.95 matched the analyst expectation of $2.95 and represented a 5.4% year‑over‑year rise from the prior year’s adjusted EPS of $2.80. The adjusted beat was largely attributable to disciplined cost control and a favorable mix shift toward higher‑margin brands, as management noted that food and beverage expenses rose 50 basis points mainly due to elevated beef costs, but labor costs fell 20 basis points thanks to productivity gains.
Management raised its full‑year 2026 adjusted EPS guidance to $10.57–$10.67, up from the previous $10.50–$10.70 range. The lower end of the new range is higher, but the upper end is slightly lower, reflecting a modest recalibration of expectations. The company also increased its revenue growth outlook to approximately 9.5% from the prior 8.5%–9.3% range and lifted same‑restaurant sales growth guidance to about 4.5% from 3.5%–4.3%. These adjustments signal confidence in demand recovery while acknowledging lingering commodity inflation and weather‑related headwinds.
CEO Rick Cardenas highlighted that the company “delivered a strong quarter” and that its teams “did a great job managing the business through the volatility created by weather.” He added that the adjusted diluted net earnings per share of $2.95 were 5.4% higher than the prior year, underscoring the effectiveness of the portfolio strategy and operational focus on cost control and menu optimization.
Investors reacted cautiously, with concerns over the revenue miss relative to some estimates and the impact of adverse winter weather on future performance. The guidance revisions, while modest, suggest management’s confidence in sustaining growth momentum amid ongoing commodity inflation and competitive pressures.
The company also confirmed a $1.50 quarterly dividend and a $1 billion share‑repurchase authorization, reinforcing its commitment to shareholder returns.
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