By Connor Hart

Darden Restaurants is scheduled to report fiscal first-quarter results before the market opens Thursday. Here is what you need to know.

SALES: The owner of Olive Garden and LongHorn Steakhouse restaurants is expected to post $3.04 billion in sales for the recent quarter, up from the $2.76 billion it notched in the same period last year, according to FactSet.

EARNINGS: Wall Street projects the Orlando, Fla., company to report net income of $234.3 million, compared with $207.2 million a year earlier. On an adjusted basis, earnings are forecast to come in at $2 a share.

COMPARABLE SALES: Same-store sales, or those from stores and digital channels in operation for at least 12 months, are anticipated to rise 4.4%. That is compared with a 1.1% decrease a year earlier.

Shares of Darden Restaurants have declined 5.3% over the past three months and were recently trading at $211.03.

WHAT TO WATCH

-- Consumers concerned about the economy are spending less at restaurants, opting to eat at home instead. While packaged-food companies and grocers including General Mills, Campbell's and Kroger have recently noted that the trend is helping drive sales, it's hurting restaurants, where empty tables and rising costs are pushing more operators into bankruptcy. Investors will be looking for insights into how often budget-conscious consumers are eating out.

-- Darden Restaurants ran more promotions last quarter, courting value-seeking diners weary of higher prices for food and groceries. These discounts helped boost sales, though they pressured earnings. Investors will be looking for updates on whether diners are still finding value in casual-dining restaurants, as well as whether the cost of getting consumers in the door is still hurting operators' bottom lines.

-- Overall visits across Darden's restaurant portfolio climbed 2.4% during the second quarter, while same-store sales rose 1.1%, according to a Placer.ai report. The location-analytics firm attributed the increases in part to the company's steady unit expansion. Still, an uptick in comparable sales would show that the company's restaurants are attracting more diners, pointing to strength and resiliency across its portfolio, the report said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

September 17, 2025 13:10 ET (17:10 GMT)

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