Darden (DRI) Q1 FY2027: EPS $2.05 in-line, revenue $3.2B slight miss, profit fell YoY on higher food/labor costs; reaffirmed FY2027 EPS guidance 11.10-11.35
What happened
Darden Restaurants reported Q1 FY2027 results on Thursday, Sept. 24, 2026: adjusted EPS of $2.05, meeting the $2.05 consensus (up 4.1% YoY from $1.97), and revenue of $3.20 billion (up 5.1% YoY) versus a $3.21 billion consensus — a slight miss. Reported net income fell 9.5% YoY to $233.4M from $258M as higher food and labor costs pressured profits. Management reaffirmed FY2027 adjusted EPS guidance of $11.10–$11.35 (near the $11.28 consensus). Same-restaurant sales rose ~3.1–3.2% overall; LongHorn posted ~6.2–6.8% comps while Olive Garden managed only ~1–1.1%. The stock slipped after the report (down ~1.5–2%).
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Who’s affected
- DRI directly (revenue miss + Olive Garden slowdown + margin pressure vs. reaffirmed guidance). Casual-dining/restaurant sector (Brinker/Chili's posted 5.6% comps in the same stretch, highlighting competitive share risk). Consumer-discretionary names exposed to consumer-spending softness.