Darden Restaurants (DRI) Q1 2027 earnings summary

Executive summary

• Total sales reached $3.2 billion in Q1 2027, up 5.1% year-over-year, with all segments achieving positive same-restaurant sales growth and performance in line with expectations.

• Diluted EPS from continuing operations was $2.05, a 4.1% increase over last year's adjusted EPS.

• Strategic initiatives and menu innovation, especially at Olive Garden and LongHorn Steakhouse, supported guest satisfaction and traffic.

• Yard House reached $1 billion in trailing 52-week sales and plans 13 new openings this year, including conversions and new prototypes.

• The company declared a quarterly dividend of $1.62 per share and repurchased $222.3 million of common stock.

Financial highlights

• Operating income for Q1 2027 was $319.3 million, with a margin of 10.0%.

• Net earnings from continuing operations were $234.3 million, representing 7.3% of sales.

• Adjusted EBITDA reached $464 million, and $406 million was returned to shareholders via dividends and share repurchases.

• Restaurant-level EBITDA margin was 18.8%, flat year-over-year.

• Effective tax rate for the quarter was 12.9%.

Outlook and guidance

• Full-year fiscal 2027 diluted EPS guidance reaffirmed at $11.10–$11.35.

• Fiscal 2027 total sales expected between $13.6 billion and $13.75 billion, with same-restaurant sales growth projected at 2.5% to 3.5%.

• 75 to 80 new restaurant openings planned; capital spending around $875 million.

• Thanksgiving calendar shift expected to create a 1% Q2 sales headwind, offset in Q3; impact varies by brand.

• Pricing expected to moderate from 3.7% in Q1 to low/mid-2% by Q4; commodity inflation forecast at 3% for the year.