The massive EPS beat (+65.6%) and raised dividend with a new $1.5B buyback authorize are strong positive signals. However, the beat was partially driven by a 53rd-week calendar effect, and FY2027 guidance implies deceleration to ~3% revenue growth ex the extra week. Look for conference call commentary on Q1 FY2027 same-restaurant sales trends and any tariff/commodity cost impacts before chasing the stock.
Price Chart
Executive Summary
Darden Restaurants (DRI) reported fiscal Q4 2026 earnings with adjusted diluted EPS of $3.66, beating consensus estimates of $2.21 by 65.6%, and total sales of $3.72B (+13.7% YoY, including a 53rd week). The Board increased the quarterly dividend by 8.0% to $1.62 per share and authorized a new $1.5B share repurchase program. Fiscal 2027 guidance calls for total sales of $13.60B to $13.75B and EPS of $11.10 to $11.35, signaling continued momentum.
Key Financial Metrics
Key Facts
- Adjusted Q4 EPS $3.66 beat consensus $2.21 by 65.6%
- Total Q4 sales $3.72B (+13.7% YoY including a 53rd week; same-restaurant sales +4.6%)
- Quarterly dividend raised 8.0% to $1.62 per share
- New $1.5B share repurchase authorization approved
- Fiscal 2027 guidance: total sales $13.60B-$13.75B, EPS $11.10-$11.35
- LongHorn Steakhouse same-restaurant sales +9.5% in Q4; Olive Garden +2.4%
- Fiscal 2026 full-year adjusted EPS $10.64, up 11.4% YoY
- Operating cash flow $1.85B in FY2026, up from $1.71B in FY2025
Financial Impact
Adjusted EPS beat consensus by $1.45 (65.6%), 22.8% YoY growth on a $24.4B market cap — a significant upside surprise. New $1.5B buyback authorization (~6% of market cap) signals strong cash generation.
Risk Factors
- Aggressive 53rd-week effect (~$0.25 EPS); base-effect normalization in FY2027
- FY2027 revenue guidance implies ~3% organic growth, a deceleration vs FY2026's 9.4%
- Macro headwinds: potential tariffs, food cost inflation (~3% guided), consumer spending shifts
- 62% of analyst ratings are bullish; elevated expectations could limit further upside
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000940944-26-000016 |
| Exhibit: ex31bylaws-asamendedthroug.htm | 0000940944-26-000016 |
| Document: dri-20260624.htm | 0000940944-26-000016 |
| Document: 0000940944-26-000016-index-headers.html | 0000940944-26-000016 |
| Document: 0000940944-26-000016-index.html | 0000940944-26-000016 |
| Document: 0000940944-26-000016.txt | 0000940944-26-000016 |
| 8-K Data (Synthetic) | 0000940944-26-000016 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | Press Release | $215.63 $197.02 | ▼ −8.63% | ▼ −8.89% | $200.40 (−7.06%) |
Aug 10, 2026 7w ago | DEFA14A | $217.97 $212.92 | ▼ −2.32% | ▼ −1.40% | $200.40 (−8.06%) |
Aug 7, 2026 8w ago | Insider Cluster | $213.76 $216.88 | ▼ −1.46% | ▼ −1.86% | $200.40 (+6.25%) |
Aug 4, 2026 8w ago | Insider Cluster | $204.57 $215.56 | ▲ +5.37% | ▲ +6.61% | $200.40 (−2.04%) |
Jul 30, 2026 9w ago | Insider Cluster | $206.97 $211.13 | ▲ +2.01% | ▼ −1.96% | $200.40 (−3.17%) |
Jul 21, 2026 10w ago | Institutional Cluster | $193.39 $218.86 | ▲ +13.17% | ▲ +10.61% | $200.40 (+3.62%) |
Jun 25, 2026 14w ago | 8-K | $212.76 $194.12 | ▼ −8.76% | ▼ −9.29% | $200.40 (−5.81%) |
Apr 6, 2026 25w ago | Insider Cluster | $195.07 $192.09 | ▼ −1.53% | ▼ −10.51% | $200.40 (+2.73%) |
US Market Status
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