On September 24, Darden Restaurants fell 6.41% in pre-market trading, trading at approximately $202.52/share, with turnover of $296,500. The decline was triggered by the company's fiscal Q1 earnings report released before market open, in which both revenue and earnings came in below Wall Street estimates.
Specifically, Darden posted adjusted earnings per share of $2.05, narrowly missing the analyst consensus of $2.06, representing a 4.06% year-over-year increase from $1.97. Quarterly sales totaled $3.200 billion, also falling short of the $3.206 billion estimate. While the misses were marginal, the dual shortfall appears to have disappointed investors who had anticipated the full-service dining operator could sustain its growth momentum. Ahead of the report, analysts at Baird had noted that casual dining demand remained resilient, with no signs of weakening, while Oppenheimer had forecast Q1 EPS of $2.03 and expected management to reiterate its fiscal 2027 guidance of $11.10 to $11.35 in adjusted EPS.
Darden Restaurants owns and operates full-service restaurant brands including Olive Garden, LongHorn Steakhouse, and Cheddar's Scratch Kitchen across the United States and Canada.
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