Darden Restaurants (DRI) is scheduled to announce its results for the first quarter of Fiscal 2026 on Thursday, September 18. DRI stock has risen more than 14% year-to-date, driven by strong same-store sales at its Olive Garden chain, upbeat Q4 earnings results, and higher sales guidance. Analysts expect the casual dining restaurant chain to report a 14% rise in Q1 FY26 EPS (earnings per share) to $2.00.
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Meanwhile, revenues are expected to grow by 10% from the year-ago quarter to $3.04 billion, according to data from the TipRanks Forecast page. It’s important to note that Darden Restaurants has outperformed EPS estimates in seven out of the past nine quarters.
Analyst’s Take Ahead of Darden’s Q1 Earnings
Heading into the Q1 print, UBS analyst Dennis Geiger reiterated a Buy rating on Darden Restaurants stock with a price target of $245. The analyst expects solid momentum across Darden’s key brands, with earnings upside likely driven by stronger sales leverage.
He sees Olive Garden same-store sales coming in around 6%–7.5%, ahead of the 5.9% consensus, while LongHorn Steakhouse is expected to deliver mid-6% growth versus the 5.3% estimate. For context, Olive Garden and LongHorn Steakhouse are two of the biggest restaurant chains owned by Darden Restaurants.
Looking ahead, Geiger anticipates that management will reaffirm most of its FY26 guidance, which calls for 7%–8% sales growth, 60–65 new restaurant openings, and adjusted EPS of $10.50–$10.70. He highlighted that key initiatives like marketing initiatives and menu innovation should keep trends positive into the second quarter.
Options Traders Anticipate a Minor Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 5.43% move in either direction.
Is DRI a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on Darden Restaurants stock based on 15 Buys and five Holds. The average DRI stock price target of $238.70 indicates upside potential of 13.65% from current levels.
