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Darden Restaurants’ Hidden Growth Engine: LongHorn Extends Its Streak To 22 Quarters!

Darden Restaurants reported a steady start to fiscal year 2027, with first-quarter results aligning with company expectations. The firm posted total sales of $3.2 billion, an increase of 5.1% year-over-year, driven by positive same-restaurant sales growth of 3.2% on a comparable calendar basis and the addition of 53 net new restaurants. Diluted net earnings per share from continuing operations grew 4.1% to $2.05. Restaurant-level EBITDA margin remained stable at 18.8%, while net earnings amounted to $234 million, representing 7.3% of sales. The company returned $406 million to shareholders through dividends and share repurchases during the quarter. Olive Garden, the largest brand, achieved 1% same-restaurant sales growth, despite challenges including a consumer lettuce concern and a calendar shift impacting promotional activities. Notably, weekday lunch traffic softened post-COVID, prompting plans for new lunch value initiatives in the current quarter.