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    How Strong Q2 2026 Results and Higher Guidance Will Impact Darden Restaurants (DRI) Investors

    Simply Wall St·12/21/2025 22:15:34
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    • Darden Restaurants reported past fiscal second-quarter 2026 results showing sales of US$3,102.1 million and net income of US$237.2 million, alongside updated full-year 2026 guidance calling for total sales growth of 8.5% to 9.3% and same-restaurant sales growth of 3.5% to 4.3%.
    • Despite elevated beef costs, Darden delivered same-restaurant sales gains across Olive Garden and LongHorn Steakhouse, leaned on promotions like Never Ending Pasta Bowl, opened more new restaurants than planned, and still raised its full-year outlook.
    • Next, we’ll examine how the upgraded sales guidance and resilient same-restaurant growth influence Darden’s existing investment narrative and assumptions.

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    Darden Restaurants Investment Narrative Recap

    To own Darden, you need to believe its core brands can keep delivering steady same-restaurant sales and margin resilience even when costs spike and traffic is choppy. This quarter’s stronger sales and raised guidance support that thesis and ease near term worries about traffic softness, but elevated beef costs remain the key risk to margins in the short run, especially if promotions and delivery growth start to compress profitability.

    Among the latest announcements, the plan to open 65 to 70 new restaurants in fiscal 2026 is most relevant here, because it ties directly into Darden’s growth catalyst around accelerating unit expansion. Those openings, alongside higher same-restaurant sales, reinforce the idea that management is still leaning into measured growth, even as commodity inflation and operational complexity from delivery could test how far margins can stretch.

    But even with solid sales guidance and expansion plans, investors should still be aware of how sustained high beef costs could...

    Read the full narrative on Darden Restaurants (it's free!)

    Darden Restaurants' narrative projects $14.3 billion revenue and $1.4 billion earnings by 2028. This requires 5.7% yearly revenue growth and about a $0.3 billion earnings increase from $1.1 billion today.

    Uncover how Darden Restaurants' forecasts yield a $220.67 fair value, a 16% upside to its current price.

    Exploring Other Perspectives

    DRI 1-Year Stock Price Chart
    DRI 1-Year Stock Price Chart

    Five members of the Simply Wall St Community value Darden anywhere between US$135.95 and US$249.58, underlining how differently people view its prospects. As you compare those views, keep in mind how the company’s heavy exposure to domestic commodity costs can affect margins and, ultimately, your expectations for its long term performance.

    Explore 5 other fair value estimates on Darden Restaurants - why the stock might be worth 28% less than the current price!

    Build Your Own Darden Restaurants Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.