Darden Restaurants, Inc. (NYSE:DRI) shares climbed in premarket trading after the company reported second-quarter revenue above market expectations, with investors looking past a modest earnings shortfall and focusing on broad-based sales growth across its portfolio.
The operator of Olive Garden and LongHorn Steakhouse reported adjusted earnings per share of $2.08 for the quarter ended November 23, slightly below the consensus estimate of $2.11. Revenue, however, rose 7.3% year over year to $3.1 billion, topping analyst forecasts of $3.07 billion. The increase was supported by a 4.3% rise in same-restaurant sales and the addition of 30 net new locations.
Performance was strongest at LongHorn Steakhouse, where same-restaurant sales grew 5.9%. Olive Garden followed with growth of 4.7%. The Fine Dining segment recorded a smaller increase of 0.8%, while the Other Business category—which now includes newly acquired Chuy’s—posted sales growth of 3.1%.
“The second quarter exceeded our top-line expectations as every segment delivered positive same-restaurant sales,” said Darden President & CEO Rick Cardenas. “Despite facing significant commodity headwinds, we leveraged our four competitive advantages to provide strong value for our guests.”
Looking ahead, Darden raised its outlook for fiscal 2026. The company now expects total sales growth of between 8.5% and 9.3%, including roughly 2% related to an extra week in the fiscal year. Same-restaurant sales are forecast to increase by 3.5% to 4.3%, while adjusted earnings per share are projected in a range of $10.50 to $10.70, including about $0.20 linked to the 53rd week.
During the quarter, Darden also returned capital to shareholders, repurchasing around 1.1 million shares for $222 million and declaring a quarterly dividend of $1.50 per share, payable on February 2, 2026.