Darden Restaurants (DRI) Q2 2026 earnings

Darden Restaurants on Thursday reported strong sales growth, fueled by demand at Olive Garden and LongHorn Steakhouse as thrifty diners look for good deals.

For the second straight quarter, the company hiked its full-year outlook for revenue growth, although it only reiterated its projections for its earnings.

“The second quarter exceeded our top-line expectations as every segment delivered positive same-restaurant sales,” Darden CEO Rick Cardenas said in a statement.

Shares of the company rose roughly 1% in early trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $2.08 adjusted vs. $2.10 expected
• Revenue: $3.1 billion vs. $3.07 billion expected

Darden reported fiscal second-quarter net income of $237.2 million, or $2.03 per share, up from $215.1 million, or $1.82 per share, a year earlier.

Higher ingredient costs, particularly for near-record prices for beef, weighed on the company’s restaurant-level margin, CFO Raj Vennam said on the company’s conference call.

Excluding restaurant closure costs and expenses related to its acquisition of Chuy’s, the restaurant company earned $2.08 per share.

Net sales rose 7.3% to $3.1 billion.

Darden’s same-store sales increased 4.3% in the quarter, topping Wall Street estimates of 3%, according to StreetAccount.

While the broader restaurant industry has seen sluggish sales growth, Darden has found success by raising its menu prices by less than inflation and adding promotions aimed at diners looking for value.

“Weaker consumer sentiment doesn’t necessarily translate into reduced spending during the quarter,” Cardenas said during the conference call.

Cardenas said the company saw high-income consumers trade into its casual-dining chains, although demand from diners making less than $50,000 fell slightly. Darden also got a traffic bump from consumers who are at least 55 years old.