Darden Restaurants's Earnings Outlook

Darden Restaurants (NYSE:DRI) is gearing up to announce its quarterly earnings on Thursday, 2025-12-18. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Darden Restaurants will report an earnings per share (EPS) of $2.10.

Anticipation surrounds Darden Restaurants's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

In the previous earnings release, the company missed EPS by $0.03, leading to a 4.16% drop in the share price the following trading session.

Here's a look at Darden Restaurants's past performance and the resulting price change:

Quarter	Q1 2026	Q4 2025	Q3 2025	Q2 2025
EPS Estimate	2.00	2.97	2.79	2.02
EPS Actual	1.97	2.98	2.80	2.03
Price Change %	-4.00	1.00	0.00	2.00

Stock Performance

Shares of Darden Restaurants were trading at $185.53 as of December 15. Over the last 52-week period, shares are up 1.14%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Darden Restaurants

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Darden Restaurants.

Analysts have provided Darden Restaurants with 27 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $220.11, suggesting a potential 18.64% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Restaurant Brands Intl, Texas Roadhouse and Aramark, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Restaurant Brands Intl, with an average 1-year price target of $75.0, suggesting a potential 59.58% downside.
• Analysts currently favor an Neutral trajectory for Texas Roadhouse, with an average 1-year price target of $184.73, suggesting a potential 0.43% downside.
• Analysts currently favor an Buy trajectory for Aramark, with an average 1-year price target of $45.4, suggesting a potential 75.53% downside.

Analysis Summary for Peers

Within the peer analysis summary, vital metrics for Restaurant Brands Intl, Texas Roadhouse and Aramark are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Darden Restaurants	Neutral	10.44%	$623.40M	11.36%
Restaurant Brands Intl	Neutral	6.90%	$843M	9.41%
Texas Roadhouse	Neutral	12.83%	$211.51M	5.71%
Aramark	Buy	14.30%	$416.02M	2.80%

Key Takeaway:

Darden Restaurants ranks in the middle among its peers for revenue growth. It is at the top for gross profit. For return on equity, it is also in the middle.

Get to Know Darden Restaurants Better

Darden Restaurants is the largest restaurant operator in the US full-service space, with consolidated revenue of $12.1 billion in fiscal 2025. The company maintains a portfolio of 11 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, The Capital Burger, and most recently, Chuy's. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales contribute modestly through the traditional grocery channel. As of the end of its fiscal 2025, the company operated 2,159 restaurants in the US.

Breaking Down Darden Restaurants's Financial Performance

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Darden Restaurants displayed positive results in 3 months. As of 31 August, 2025, the company achieved a solid revenue growth rate of approximately 10.44%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Darden Restaurants's net margin is impressive, surpassing industry averages. With a net margin of 8.47%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Darden Restaurants's ROE excels beyond industry benchmarks, reaching 11.36%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Darden Restaurants's ROA stands out, surpassing industry averages. With an impressive ROA of 2.03%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Darden Restaurants's debt-to-equity ratio is below the industry average at 2.77, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Darden Restaurants visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.