Darden Shares Fall 3% as Olive Garden Miss and 2027 Outlook Trails Street
Updated
Updated · CNBC · Jun 25
Darden Shares Fall 3% as Olive Garden Miss and 2027 Outlook Trails Street
3 articles · Updated · CNBC · Jun 25
Summary
Premarket shares dropped more than 3% after Darden posted a mixed fiscal Q4: adjusted EPS beat estimates at $3.66 versus $3.63, while revenue of $3.72 billion narrowly missed $3.73 billion.
Olive Garden drove the disappointment, with same-store sales up 2.4% against 3.2% expectations, and Darden's fine-dining segment rose 1.9%, missing the 3.1% forecast.
LongHorn Steakhouse offset some weakness with 9.5% same-store sales growth, helping companywide same-store sales rise 4.6%, above the 4.1% StreetAccount estimate.
For fiscal 2027, Darden forecast revenue of $13.60 billion to $13.75 billion and EPS of $11.10 to $11.35, both at or below Wall Street targets of $13.72 billion and $11.40.
Net income still climbed to $404.9 million from $303.8 million a year earlier, while Darden expects 2.5% to 3.5% same-store sales growth and 75 to 80 new openings next year.