Earnings Call
Sep 24, 2026
Q3 FY2026
EPS Estimate
2.05
EPS Actual
2.95
Post-Earnings Close
$207.24
Earnings Reaction
-3.0%
Darden delivered a strong third quarter with $3.3 billion in sales (5.9% growth) and same-restaurant sales of 4.2%, significantly outperforming the casual dining industry which declined 1.2%. Adjusted EPS of $2.95 grew 5.4% year-over-year, modestly beating consensus expectations of $2.05 on revenue of $3.21 billion. The company's outperformance gap to the industry widened to 540 basis points, with all four largest brands exceeding industry comps by more than 400 basis points. Olive Garden posted 3.2% same-restaurant sales growth despite running three fewer weeks of price-pointed promotions than the prior year, while LongHorn Steakhouse accelerated to 7.2% comps with traffic up 3.3%, benefiting from strong beef value positioning amid elevated commodity costs. The quarter was marked by disciplined pricing strategy, the company underpriced inflation by 40 basis points at the restaurant level, and strategic menu innovation, including Olive Garden's successful rollout of a lighter portion section that is driving incremental frequency without meaningful operational complexity. Management raised full-year fiscal 2026 guidance to $10.57,
Report generated on Sep 23, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
Read the full DRI analysis
The complete report, with key themes, analyst Q&A summary, notable quotes, and market context — is free with an account. No password, no card.