Reported Q: Q2 2026 Rev YoY: -1.8% EPS YoY: -25.7% Move: -2.82%
Darden Restaurants Inc
0I77.L
$198.17 -2.82%
Exchange LSE Sector Consumer Cyclical Industry Restaurants
Q2 2026
Published: Dec 30, 2025

Company Status Snapshot

Fast view of the latest quarter outcome for 0I77.L

Reported

Report Date

Dec 30, 2025

Quarter Q2 2026

Revenue

3.10B

YoY: -1.8%

EPS

2.03

YoY: -25.7%

Market Move

-2.82%

Previous quarter: Q1 2026

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Earnings Highlights

  • Revenue of $3.10B down 1.8% year-over-year
  • EPS of $2.03 decreased by 25.7% from previous year
  • Gross margin of 68.9%
  • Net income of 237.20M
  • ""We opened 17 new restaurants during the quarter and are on pace to exceed our planned openings for the full fiscal year. These new restaurants opened faster than planned, collectively contributing forty additional operating weeks, versus our plan for the quarter."" - Rick Cardenas
0I77.L
Company 0I77.L

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Executive Summary

Darden Restaurants reported a robust QQ2 2026 top line, driven by continued strength across its portfolio and favorable mix versus industry peers, though margins remained pressured by elevated beef costs. Total sales reached approximately $3.102 billion, up 7% year-over-year, supported by 4.3% same-restaurant sales growth, 30 net new restaurants, and the Chewy’s acquisition in October. Olive Garden led with 4.7% same-restaurant sales, supported by the Never Ending Pasta Bowl promotion and a growing first-party delivery channel (Uber Direct), which accounted for 4% of quarterly sales. Management stressed the four competitive advantages and portfolio breadth that allow Darden to price below inflation over the long term and diversify cost pressures across brands. They anticipate beef prices to ease into the fourth quarter, though commodity inflation remained a meaningful near-term headwind, with total inflation guidance for fiscal 2026 running around 3.5% and commodities inflation in the 4–5% range. The company raised its full-year guidance to reflect stronger year-to-date performance: total sales growth of 8.5%–9.3%, same-restaurant sales growth of 3.5%–4.3%, and 65–70 new openings. Diluted EPS guidance remains $10.60–$10.70, including roughly $0.20 benefit from a fifty-third week. The quarter reinforces Darden’s ability to outperform casual-dining benchmarks, supported by strategic promotions, disciplined capital allocation, and ongoing investments to sustain guest value. However, investors should monitor beef commodity trajectories, restaurant-level margin recovery timing, delivery mix progression, and the pace of new unit openings given macro volatility. The outlook suggests that margin expansion is expected in the back half as pricing closes the gap with inflation and beef costs moderate.

Key Performance Indicators

Revenue
Decreasing
3.10B
QoQ: 1.89% | YoY: -1.77%
Gross Profit
Increasing
2.14B
68.93% margin
QoQ: 1.08% | YoY: 204.49%
Operating Income
Decreasing
320.40M
QoQ: -5.54% | YoY: -23.39%
Net Income
Decreasing
237.20M
QoQ: -7.99% | YoY: -26.65%
EPS
Decreasing
2.05
QoQ: -7.24% | YoY: -25.72%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2026 3,102.10 2.03 -1.8% View
Q1 2026 3,044.70 2.19 +10.4% View
Q4 2025 3,271.70 2.58 +10.6% View
Q3 2025 3,158.00 2.74 +6.8% View
Q2 2025 2,890.00 1.82 -2.9% View