Darden Q1 Estimates Show 4.6% EPS Growth, LongHorn Leads Sales
Consensus expects Darden's Q1 EPS to rise 4.6% to $2.06. LongHorn Steakhouse drives sales growth with a projected 10.7% increase, while Olive Garden same-store sales slow to 1.7%.
Key points
- Darden Q1 EPS is expected to rise 4.6% to $2.06, with revenue up 5.3% to $3.2 billion.
- LongHorn Steakhouse sales are projected to grow 10.7% to $859.29 million, leading segment performance.
- Olive Garden same-store sales are estimated to slow to 1.7% from 5.9% in the prior year.
Darden Restaurants (DRI) is set to report first-quarter results with consensus estimates indicating a 4.6% year-over-year increase in earnings per share to $2.06. Revenue is projected to climb 5.3% to $3.2 billion, reflecting steady top-line expansion across the company's portfolio. According to Yahoo Finance, these figures represent the current baseline against which the company’s performance will be measured.
Analyst expectations have seen minor adjustments recently, with the consensus EPS estimate revised down by 0.2% over the past 30 days. This slight downward tweak suggests a cautious stance from investors regarding near-term earnings power, even as overall revenue growth remains positive. The stability of these forecasts provides a clear benchmark for assessing the company's operational execution in the coming report.
Segment Sales Show Divergent Momentum
LongHorn Steakhouse is expected to be the primary driver of revenue growth, with sales forecast at $859.29 million, a 10.7% increase from the prior year. In contrast, Olive Garden is projected to generate $1.35 billion in sales, marking a 3.9% year-over-year rise. The fine dining segment is estimated to contribute $302.67 million, up 5.6%, while other businesses are expected to add $684.66 million, a 0.6% increase.
Same-Store Sales Reveal Brand Differences
Traffic trends vary significantly across Darden's brands. LongHorn Steakhouse is expected to post a 6.3% same-restaurant sales increase, surpassing the 5.5% reported in the same quarter last year. Olive Garden, however, is forecast to see its same-store sales growth slow to 1.7%, down sharply from the 5.9% recorded in the prior year period. This divergence highlights a shift in consumer behavior between the two major concepts.
Olive Garden Unit Count Expands
The company continues to grow its physical footprint, with the number of company-owned Olive Garden restaurants estimated to reach 954. This represents an increase from the 933 locations reported in the same quarter of the previous year. The expansion supports the overall sales growth despite the slower pace in same-store sales performance for this specific brand.
