Darden Q1 sales rise 5.1% but Olive Garden slows and revenue edges below estimates; shares fall 3%

DRI reported fiscal 2027 first-quarter sales of $3.2 billion, up 5.1% from a year earlier, with same-restaurant sales up 3.2% and adjusted diluted EPS up 4.1% to $2.05 . The company reaffirmed its full-year EPS outlook of $11.10 to $11.35 . Revenue landed just below the consensus of $3.21 billion, while the EPS comparison depends on the estimate provider: some trackers had $2.05 as in line, others flagged a small miss.

The weak spot was Olive Garden, the largest brand, where same-restaurant sales rose only about 1% , the slowdown CNBC highlighted in its coverage. Management said the World Cup and consumer concerns about lettuce cut the chain's traffic by an estimated 150 to 200 basis points . LongHorn Steakhouse carried the quarter with 6.8% comparable growth and an 18% segment margin, and Yard House grew comps 10% and passed $1 billion in trailing annual sales .

Shares fell about 3% on the day. Pricing ran at 3.7% against 3.5% commodity inflation, and management expects pricing to moderate over the year while commodity inflation holds near 3% , which leaves less room for error if traffic stays soft. Investors will watch whether Olive Garden's Never-Ending Pasta Bowl promotion and a new weekday-lunch push restore traffic in the second quarter , and whether the resilience to cost inflation that some analysts credited holds up.