Darden Restaurants Q4: LongHorn Same-Store Sales Surge 9.5%, Olive Garden Disappoints, FY27 Guidance Falls Short

Darden Restaurants (NYSE: DRI) reported Q4 and full-year FY2026 results before the open on June 25, 2026 (ET). Adjusted EPS edged past Wall Street's consensus, but same-store sales at flagship Olive Garden missed expectations, the Fine Dining segment came in soft, and FY2027 full-year guidance landed at the low end of analyst forecasts—pushing the stock down more than 3% in premarket trading.^[CNBC]

Q4 Key Financial Results

Darden's Q4 (period ended May 2026) headline metrics:^{[SEC Form 8-K]}

• Total quarterly revenue: $3.720B, +13.7% YoY, slightly below the analyst estimate of $3.730B
• Adjusted diluted EPS: $3.66, above consensus of $3.63
• GAAP net income: $404.9M (diluted EPS $3.51), vs. $303.8M (diluted EPS $2.58) a year ago, up ~33% YoY
• Blended same-store sales: +4.6%
• Net new units: 43

Of the 13.7% YoY revenue gain, approximately 7.6 percentage points reflect an extra operating week in the quarter; the remainder breaks down between same-store sales growth (~4.6 ppts) and new unit contributions. Stripping out that calendar tailwind, organic revenue growth was roughly 6.1%.

Same-Store Sales by Brand: LongHorn Leads, Olive Garden and Fine Dining Lag

Comp performance diverged sharply across Darden's portfolio this quarter:^[CNBC]

• LongHorn Steakhouse: same-store sales +9.5%, well above StreetAccount's 7.1% estimate. Per CNBC, LongHorn was the standout brand of the quarter, capitalizing on robust demand for steak dining and continued improvements in restaurant-level execution.
• Olive Garden: same-store sales +2.4%, below StreetAccount's 3.2% estimate. As Darden's largest brand by unit count and revenue mix, Olive Garden's deceleration was read by the market as a sign of softening resilience in the casual dining consumer.
• Fine Dining (The Capital Grille, Eddie V's, and others): same-store sales +1.9%, below StreetAccount's 3.1% estimate. Upscale dining is more exposed to swings in macro consumer confidence and discretionary income, and the segment reflected that vulnerability this quarter.
• Other Business (Cheddar's Scratch Kitchen, Yard House, and others): same-store sales +4.6%
• Blended (all brands): same-store sales +4.6%, above StreetAccount's overall estimate of 4.1%^[Quartz]

Worth noting: while Olive Garden's quarterly comp missed, absolute growth remained positive. And while LongHorn beat handily, its total revenue contribution still trails Olive Garden's.

FY2027 Full-Year Guidance vs. Wall Street Expectations

Darden also issued FY2027 (fiscal year ending May 2027) full-year operating guidance:^{[SEC Form 8-K]}

• Total revenue: $13.60B–$13.75B
• Blended same-store sales: +2.5% to +3.5%
• Adjusted diluted EPS: $11.10–$11.35
• Net new units: 75–80
• Total capex: ~$875M
• EBITDA: $2.26B–$2.29B
• Total inflation: ~3.0%
• Effective tax rate: ~13.5%

Per CNBC, both EPS and revenue guidance came in at the low end of analyst forecasts—which the market identified as a primary driver of premarket pressure.^[CNBC]

The midpoint of the FY2027 same-store sales guide, ~3%, is below this quarter's actual 4.6%, signaling management's cautious read on traffic and average-check growth in the year ahead. The 75–80 net new unit target—up from 43 net adds in FY2026—shows Darden is leaning on unit expansion to drive top-line scale even as it tempers same-store expectations.

Market Reaction: Stock Falls More Than 3% Premarket

Darden shares fell more than 3% in premarket trading following the report. Per CNBC, investors homed in on two pressure points: Olive Garden's comp miss and FY2027 guidance that came in conservative relative to Street forecasts.^[CNBC]

On the other side of the ledger, adjusted EPS of $3.66 beat consensus, LongHorn's 9.5% comp was a clear outperformance, and quarterly net income rose ~33% YoY. Analyst rating and price-target changes had not been fully disclosed as of publication.

FY2026 Full-Year Recap

Darden's full-year FY2026 headline metrics:^{[SEC Form 8-K]}

• Total revenue: $13.21B, +9.4% YoY (extra operating week contributed ~2.1 ppts)
• Adjusted diluted EPS: $10.64, +11.4% YoY
• Blended same-store sales: +4.5%
• Olive Garden full-year same-store sales: +4.0%
• LongHorn Steakhouse full-year same-store sales: +7.2%
• Net new units: 43

FY2026 adjusted EPS growth of 11.4% and blended comps of +4.5% represent a solid result for Darden against the backdrop of persistent cost inflation across the U.S. restaurant industry.

About Darden Restaurants

Darden Restaurants is one of the largest full-service restaurant operators in the United States, with brands spanning casual dining and fine dining. Key brands include:

• Casual Dining: Olive Garden (Italian), LongHorn Steakhouse (steakhouse), Cheddar's Scratch Kitchen, Yard House, Bahama Breeze, and others
• Fine Dining: The Capital Grille, Eddie V's, and other upscale concepts

As of the end of this quarter, Darden operated approximately 2,000+ locations across the U.S. and international markets. The divergence between LongHorn's blowout comp and Olive Garden's miss this quarter reflects the uneven consumer resilience playing out across price tiers in the current inflationary environment.

Upcoming Timeline

• June 25, 2026, 8:30 AM ET: FY2026 Q4 and full-year results released (this morning, pre-market)
• June 25, 2026, 8:30 AM ET: Management earnings call, hosted by President & CEO Rick Cardenas and CFO Raj Vennam
• FY2027 Q1 results (quarter ending August 2026): expected late September to early October 2026

This content is for informational purposes only and does not constitute investment advice, trading advice, or any guarantee of returns.