Darden Restaurants (NYSE: DRI) posted Q3 FY2026 adjusted EPS of $2.95 (meeting consensus) and revenue of $3.35 billion (beating the $3.33B estimate), driven by 4.2% same-restaurant sales growth. Shares rose 1.85% on March 19, 2026, closing at $204.42 following the pre-market earnings release.
About Darden Restaurants
Darden Restaurants, Inc. (NYSE: DRI) is one of the largest full-service restaurant operators in the United States and Canada, founded in 1938 and headquartered in Orlando, Florida. The company operates a diversified portfolio of brands including Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Ruth’s Chris Steak House, Chuy’s, Seasons 52, and Eddie V’s. As of February 22, 2026, Darden operated 2,196 company-owned restaurants.
As of March 19, 2026, Darden carries a market capitalization of approximately $23.54 billion and a trailing P/E ratio of approximately 21.62. The company offers an annual dividend of $6.00 per share (representing a ~2.94% dividend yield based on the stock price at the time of the report) and employs a workforce spread across thousands of restaurant locations nationwide. With trailing twelve-month revenue of $12.76 billion, Darden remains a defining force in the casual and fine dining sectors.
Top Financial Highlights
- Total Revenue reached $3,345.3 million for Q3 FY2026, up from $3,158.0 million in Q3 FY2025, representing a 5.9% year-over-year increase
- Reported Diluted EPS from continuing operations was $2.68, compared to $2.74 in the same quarter last year
- Adjusted Diluted EPS from continuing operations was $2.95, an increase of 5.4% versus the prior year’s $2.80
- Net Earnings were $306.8 million for the quarter, compared to $323.4 million in Q3 FY2025
- Earnings from Continuing Operations totaled $310.6 million, down from $323.7 million in Q3 FY2025 due to elevated impairment charges
- Operating Income was $406.4 million, compared to $418.2 million in the prior year period
- Adjusted EBITDA for the quarter was $579 million
- Same-Restaurant Sales grew 4.2% on a blended basis, outperforming the casual dining industry benchmark by 540 basis points
- Segment Revenue Breakdown (Q3 FY2026)
- Olive Garden: $1,393.0 million (segment profit $320.0M)
- LongHorn Steakhouse: $854.2 million (segment profit $159.0M)
- Fine Dining: $402.0 million (segment profit $88.5M)
- Other Business (incl. Chuy’s, Cheddar’s, Yard House, etc.): $696.1 million (segment profit $108.8M)
- Cash and Cash Equivalents stood at $240.4 million as of February 22, 2026
- Share Repurchases totaled $127 million during the quarter; $516 million remains under the current $1 billion authorization
- Quarterly Dividend Declared of $1.50 per share, payable May 1, 2026
- FY2026 Full-Year Adjusted EPS Guidance updated to $10.57 to $10.67 (midpoint $10.62)
Beat or Miss?
| Metric | Reported | Analyst Estimate | Difference / Analysis |
| Total Revenue | $3,345.3M | ~$3,330M | Beat by ~$15M; +5.9% YoY |
| Adjusted Diluted EPS | $2.95 | $2.94–$2.95 | In line / slight beat |
| Reported Diluted EPS | $2.68 | N/A | Down from prior year $2.74 due to impairments |
| Operating Income | $406.4M | N/A | Down from $418.2M YoY, impacted by Bahama Breeze closures |
| Same-Restaurant Sales Growth | 4.20% | +4.0% (approx.) | Beat; outperformed industry by 540 bps |
| FY2026 Adjusted EPS Guidance (Full Year) | $10.57–$10.67 | ~$10.57 | Slightly raised; prior range was $10.50–$10.70 |
Some sources indicate a minor revenue miss versus higher-end FactSet consensus of ~$3.37B, while Zacks and Barchart consensus placed the estimate at $3.33B, which Darden exceeded.
What Leadership Is Saying?
“We delivered a strong quarter. We continue to outperform the industry same-restaurant sales benchmark, and this quarter we widened that gap as Olive Garden, LongHorn Steakhouse, Yard House, and Cheddar’s Scratch Kitchen each significantly exceeded the benchmark. Across all our brands, we’re seeing historically high team member and manager retention, which is enabling consistent execution and strong guest satisfaction. I’m proud of our teams, as we continue to execute our proven strategy to grow sales, manage costs, and deliver value for guests and shareholders.” Rick Cardenas, President and CEO, Darden Restaurants
“At the Darden Restaurants level, our comps were 4.2%. Our check growth was 3.5%. Pricing was basically 3.4%… Food and beverage expense was 50 basis points higher, primarily due to elevated beef costs, contributing to total commodities inflation of about 5%. Restaurant labor was 20 basis points lower on productivity improvements; pricing was in line with total labor inflation of 3.3%. Restaurant-level EBITDA margin was 21%, down 30 basis points from last year.” Rajesh (Raj) Vennam, Senior VP and CFO, Darden Restaurants
Historical Performance
Darden Q3 YoY Comparison
| Category | Q3 FY2026 | Q3 FY2025 | Change (%) |
| Total Revenue | $3,345.3M | $3,158.0M | 5.90% |
| Net Earnings | $306.8M | $323.4M | -5.10% |
| Earnings from Continuing Operations | $310.6M | $323.7M | -4.00% |
| Operating Income | $406.4M | $418.2M | -2.80% |
| Adjusted Diluted EPS | $2.95 | $2.80 | 5.40% |
| Reported Diluted EPS | $2.68 | $2.74 | -2.20% |
| Food and Beverage Costs | $1,026.7M | $953.6M | 7.70% |
| Restaurant Labor | $1,046.9M | $995.0M | 5.20% |
| Total Operating Costs and Expenses | $2,938.9M | $2,739.8M | 7.30% |
| Same-Restaurant Sales Growth | 4.20% | N/A | Outperformed benchmark by 540 bps |
| Olive Garden Revenue | $1,393.0M | $1,330.3M | 4.70% |
| LongHorn Steakhouse Revenue | $854.2M | $768.1M | 11.20% |
| Fine Dining Revenue | $402.0M | $385.3M | 4.30% |
| Other Business Revenue | $696.1M | $674.3M | 3.20% |
Competitor Comparison
Casual Dining YoY Snapshot
The following table provides a YoY comparison for Darden and its closest publicly traded casual dining competitor, Brinker International, across the most recently reported comparable periods.
| Category | Darden (DRI) Q3 FY2026 | Darden (DRI) Q3 FY2025 | Change (%) | Brinker (EAT) Q2 FY2026 | Brinker (EAT) Q2 FY2025 | Change (%) |
| Total Revenue | $3,345.3M | $3,158.0M | 5.90% | $1,450M | ~$1,355M | 7.00% |
| Net Income | $306.8M | $323.4M | -5.10% | ~$99.5M | N/A | N/A |
| Adjusted EPS | $2.95 | $2.80 | 5.40% | $2.87 | $2.80 | 2.50% |
| Same-Store Sales Growth | 4.20% | N/A | Outperformed benchmark by 540 bps | ~+7% | N/A | N/A |
| Operating Margin | ~12.1% | ~13.2% | -110 bps | ~18.8% | ~19.1% | -30 bps |
| Restaurant Count | 2,196 | 2,165 | +31 net new | N/A | N/A | N/A |
Brinker International’s Q3 FY2026 results had not been reported as of the Darden Q3 FY2026 announcement date (March 19, 2026). Brinker’s Q2 FY2026 data (reported January 28, 2026) is used for the nearest available comparison. Brinker Q3 FY2026 is estimated for May 2026.
How the Market Reacted?
DRI shares opened at $195.72 on March 19, 2026 (the morning of the earnings release), dipped to an intraday low of $195.69, then rallied sharply to close at $204.42, representing a gain of +1.85% for the session on volume of approximately 3.28 million shares. This positive move came despite the pre-market opening suggesting initial uncertainty, as the stock had closed at $200.71 on March 18, 2026.
The market’s reaction was broadly bullish, aligning with the report’s tone of solid sales outperformance and an updated full-year guidance midpoint of $10.62 in adjusted EPS. Analysts maintained a consensus “Buy” rating on DRI, with an average 12-month price target of $224.17, implying roughly 9.7% upside from the closing price on earnings day.
