Darden (DRI) Q1 2027 Earnings Call Transcript
Darden (DRI) reported Q1 2027 sales of $3.2B, up 5.1%, with EPS of $2.05, up 4.1%. Same-restaurant sales grew 3.2%, with LongHorn and Yard House leading. Full-year EPS guidance reaffirmed at $11.10-$11.35. World Cup and lettuce concerns impacted Olive Garden. Yard House hit $1B in trailing sales. Management noted risks from external events and Bahama Breeze wind-down costs.
How this was made

The 30-second read
Why it matters
The earnings release provides fresh data on sales growth, margins, and capital returns, informing short‑term trading decisions.
Market read
First‑quarter earnings and guidance reaffirmation are primary drivers for DRI's near‑term price action.
What to watch
Potential headwinds from World Cup‑related traffic declines and lettuce concerns at Olive Garden.
Background
Darden Restaurants (NYSE:DRI) operates Olive Garden, LongHorn Steakhouse, Yard House, and other dining brands.
Ticker impact
Darden Restaurants reported Q1 2027 results with 5.1% sales growth, reaffirmed full-year EPS guidance of $11.10‑$11.35.
Modest upside potential if market prices in guidance; limited downside risk.
Strong same‑restaurant sales across brands and solid cash returns indicate operational resilience, but modest EPS growth limits upside.
Market effects
Positive same‑restaurant sales may lift broader casual dining sector expectations.
U.S. restaurant stocks could see modest gains following Darden's reaffirmed outlook.
Limited; impact confined to U.S. consumer discretionary segment.
Counterpoint
If investors expect higher growth, the reaffirmed guidance could be seen as a disappointment, prompting a sell‑off.
Key entities
- ExecutiveRicardo Cardenas
President and CEO of Darden Restaurants.
- ExecutiveRaj Vennam
Chief Financial Officer of Darden Restaurants.

