Darden Restaurants reported $3.2 billion in sales for the first quarter of fiscal 2027, an increase of 5.1% year over year, supported by positive same-restaurant sales across all its operating segments.
For the quarter ended August 30, 2026, Darden reported diluted net earnings from continuing operations of $2.05 per share, representing a 4.1% increase compared with the prior year’s adjusted diluted earnings.
The Orlando-based restaurant operator also reaffirmed its fiscal 2027 financial outlook, including expected diluted net earnings from continuing operations of $11.10 to $11.35 per share.
Darden’s consolidated same-restaurant sales increased 3.1% on a fiscal-calendar basis and 3.2% on a comparable-calendar basis.
The distinction reflects the company’s transition from a 53-week fiscal year to a 52-week fiscal year, which created a one-week difference between the periods being compared.
The company provided both measures to help investors evaluate its restaurant performance.
LongHorn Steakhouse recorded the strongest comparable-sales growth among Darden’s reported operating segments, with same-restaurant sales increasing 6.2% on a fiscal-calendar basis and 6.8% on a comparable-calendar basis.
LongHorn generated $860.9 million in quarterly sales, compared with $776.4 million a year earlier.
Its segment profit increased to $154.6 million from $134.9 million, making it an important contributor to Darden’s overall sales and profit growth.
Olive Garden generated approximately $1.33 billion in quarterly sales, compared with $1.30 billion in the prior-year period.
Its same-restaurant sales increased 1.1% on a fiscal-calendar basis and 1% on a comparable-calendar basis.
Olive Garden’s segment profit rose to $270.8 million from $267.6 million, maintaining its position as Darden’s largest business by sales and segment profit.
The company’s Fine Dining segment, which includes its upscale restaurant operations, reported $304.2 million in sales, compared with $286.5 million a year earlier.
Fine Dining same-restaurant sales increased 1.6% on a fiscal-calendar basis and 1% on a comparable-calendar basis.
The segment generated $39.6 million in profit, compared with $38.7 million in the prior-year quarter.
Darden’s Other Business segment reported $705.4 million in sales, up from $680.7 million.
Its same-restaurant sales increased 3.8% on a fiscal-calendar basis and 4.5% on a comparable-calendar basis, while segment profit rose to $111.5 million from $109.3 million.
Darden’s restaurant portfolio includes Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Chuy’s, Seasons 52, and Eddie V’s.
The company excluded Bahama Breeze from its quarterly same-restaurant sales calculations because it expects all remaining locations to be closed or converted to other brands by the fourth quarter of fiscal 2027.
Darden President and CEO Rick Cardenas identified the positive same-restaurant sales results across all segments as an important development during the quarter.
Management continues to emphasize restaurant operations, customer loyalty, employee investment, and capital allocation as priorities for the business.
Alongside its operating results, Darden announced additional capital returns to shareholders.
During the quarter, the company repurchased approximately 1.1 million shares for $222.3 million, leaving approximately $1.3 billion available under its existing $1.5 billion share repurchase authorization.
Darden’s board also declared a quarterly cash dividend of $1.62 per share.
The dividend is payable on November 2, 2026, to shareholders of record as of October 9.
The company maintained its full-year fiscal 2027 financial guidance, including its diluted earnings forecast of $11.10 to $11.35 per share from continuing operations.
The reaffirmation follows the positive same-restaurant sales results reported across its portfolio during the first quarter.
KEY QUOTES:
“The first quarter was a solid start to our fiscal year with each of our segments delivering positive same-restaurant sales. The performance across our portfolio reinforces the importance of having distinctive brands, each with a clear strategy, supported by Darden’s scale and other competitive advantages. Looking ahead, our focus remains the same: operate our restaurants at a high level, strengthen guest loyalty, invest in our people and brands, and deploy capital in ways that support long-term shareholder value.”
Rick Cardenas, President and CEO of Darden Restaurants
