Darden Restaurants misses quarterly earnings and revenue estimates as Olive Garden growth slows

Darden Restaurants on Thursday reported quarterly earnings and revenue that narrowly missed analysts' expectations as same-store sales growth at Olive Garden slows.

Shares of the company fell 5% in premarket trading.

Here's what the company reported for the quarter ended Aug. 30 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $2.05 vs. $2.06 expected

Revenue: $3.20 billion vs. $3.21 billion expected

Darden reported fiscal first-quarter net income of $233.4 million, or $2.04 per share, down from $257.8 million, or $2.19 per share, a year earlier.

Net sales rose 5.1% to $3.20 billion.

The company's same-store sales increased 3.1% during the fiscal quarter as each of Darden's business units reported growth.

LongHorn Steakhouse was once again the top performer of the portfolio this quarter, as same-store sales rose 6.2%. The chain has overtaken Olive Garden to become Darden's top performer, although it still accounts for a smaller share of the company's overall revenue.

Olive Garden saw its same-store sales inch up 1.1%. While it is still the company's largest chain by both number of locations and sales, Olive Garden has seen its growth weaken as diners have become more choosy about their spending.

Darden's fine-dining business reported same-store sales growth of 1.6%. The segment includes chains like The Capital Grille and Ruth's Chris.

The company's remaining chains, which are grouped under its "other business" division, saw same-store sales grow 3.8% in the quarter.

Darden also reiterated its forecast for fiscal 2027. The company is projecting total sales of $13.60 billion to $13.75 billion and net earnings per share from continuing operations in a range of $11.10 to $11.35.