Darden has fueled strong sales growth through demand at Olive Garden and LongHorn Steakhouse as thrifty diners look for good deals. The company has found success by raising its menu prices by less than inflation and adding promotions aimed at diners looking for value. Olive Garden has benefited from the popularity of its $13.99 Never Ending Pasta Bowl promotion and growing delivery business, plus the addition of smaller portions at lower prices for inflation-weary consumers.
Cyborg Score Rationale
Darden delivered Q2 FY2026 revenue of $3.1 billion beating expectations and same-store sales growth of 4.3%, topping Wall Street estimates. The company raised full-year fiscal 2026 total sales growth expectations to 8.5% to 9.3%, while maintaining strong shareholder returns through dividends and share buybacks despite inflationary headwinds.
Top Insights
Olive Garden accounts for 44% of quarterly sales with 4.7% same-store growth, driven by promotional menu items and delivery expansion
LongHorn Steakhouse achieved 5.9% same-store sales growth faster than Olive Garden, attracting higher traffic from consumers earning under $50,000
The company acquired 103 Chuy's Tex-Mex restaurants and opened 22 net new restaurants, contributing to a 10.4% sales increase in Q1
Inflation is expected at 3.5% with adjusted earnings guidance of $10.50 to $10.70 per share for fiscal 2026 as higher ingredient costs weigh on margins
Named Competitors
Applebee's — Casual dining with promotions
Cheesecake Factory — Casual dining with premium offerings
Cracker Barrel — Casual dining and retail
Chili's — Casual dining with competitive pricing
Recent Developments
(December 2025) Raised FY2026 full-year revenue growth guidance to 8.5%-9.3% with Q2 same-store sales of 4.3% exceeding expectations
(December 2025) Declared quarterly dividend of $1.50 per share and repurchased $222 million of stock in Q2
(September 2025) Acquired 103 Chuy's Tex-Mex restaurants to expand portfolio and geographic reach
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