Darden Restaurants Inc

Darden Restaurants is testing new smaller prototypes for brands like Yard House and Cheddar's Scratch Kitchen, aiming to lower construction costs and speed up new restaurant openings. The most widely followed narrative currently places Darden's fair value at about $228 per share, above the recent close near $196, framing the stock as undervalued. The stock is up about 1% over the past day but down around 8% over the past month, with a 1-year total shareholder return slightly below flat. Longer-term returns remain solidly positive, with 3-year and 5-year total shareholder returns holding up better than recent moves. The narrative leans on steady revenue expansion, firmer margins, and a richer earnings multiple, though assumptions could be tested if casual dining guest counts weaken further or delivery complexity weighs on margins.

PR Newswire released its weekly roundup of notable press releases for July 13–17, 2026, highlighting 13 announcements across consumer, technology, and finance sectors. Olive Garden announced the return of its Never-Ending Pasta Pass, offering 13 weeks of unlimited pasta, sauces, and toppings during the Never-Ending Pasta Bowl promotion. KFC brought back Popcorn Chicken as part of its Kentucky Fried Comeback journey, responding to fan demand. United Airlines introduced a new Economy Plus seating option on its Airbus A321XLR aircraft, featuring extra elbow room and a shared table across an open middle seat, available for sale later this year. 3M and Microsoft announced a strategic partnership to advance AI data center infrastructure by combining Microsoft’s digital and hyperscale capabilities with 3M’s materials science and precision manufacturing. Other highlighted releases included Thomson Reuters and KKR forming a joint venture for Thomson Reuters’ Global Print business, with KKR acquiring a 51% stake and Thomson Reuters receiving approximately $500 million in gross proceeds while retaining 49% equity; Jeep unveiling the 2027 Wrangler Laredo; Lilly acquiring AtaiBeckley to develop therapies for treatment-resistant depression; Chesapeake Utilities’ Florida Energy Pathway Project; The Home Depot’s 2026 Halloween collection; Farmers Insurance introducing tools to simplify insurance understanding; State Affairs raising $70 million for policy and regulatory intelligence; AT&T offering free calls to countries in soccer’s semifinal, third-place, and final matches; and OpenTable revealing its 2026 Top 100 Hotel Restaurants in America.

Darden Restaurants delivered a strong fiscal fourth quarter despite temporary distortions, with adjusted earnings per share of $3.66 and same-store sales growth of 4.6%. LongHorn Steakhouse posted a 9.5% same-store sales increase, its best performance in years, while Olive Garden's reported weakness reflected a lighter-portions menu initiative that reduced same-store sales by roughly 80 basis points. Excluding the impact of a 53rd fiscal week, underlying organic revenue growth is approximately 5.5%, and management expects beef inflation to pressure only the first quarter before easing. The company announced a new $1.5 billion share repurchase authorization and an 8% dividend increase, with analyst price targets ranging from $227 to $235 over the next year.

Darden Restaurants reported fourth-quarter fiscal 2026 adjusted earnings per share of $3.66, beating the Zacks Consensus Estimate of $3.63, while total sales of $3.72 billion missed the consensus mark of $3.74 billion. Sales increased 13.7% year over year, driven by a blended same-restaurant sales increase of 4.6%, contributions from 43 net new restaurants, and an extra week of operations. By segment, Olive Garden sales rose 11.4% to $1.54 billion, LongHorn Steakhouse sales jumped 21.9% to $1.02 billion, Fine Dining sales grew 10.9% to $371 million, and Other Business sales increased 9.8% to $793.3 million. For fiscal 2027, the company expects total sales between $13.60 billion and $13.75 billion and same-restaurant sales growth of 2.5% to 3.5%, with plans to open 75 to 80 new restaurants.

Darden Restaurants reported quarterly earnings of $3.66 per share, beating the Zacks Consensus Estimate of $3.63 per share. This compares to earnings of $2.98 per share a year ago. The company posted revenues of $3.72 billion for the quarter ended May 2026, missing the Zacks Consensus Estimate by 0.42%, while year-ago revenues were $3.27 billion. Over the last four quarters, Darden has topped consensus revenue estimates three times. Shares have added about 16% since the beginning of the year, outperforming the S&P 500's gain of 7.5%.

Darden Restaurants reported higher fourth-quarter net income and announced a dividend increase along with a new share repurchase program of up to $1.5 billion. Net income rose to $407.8 million, or $3.54 per share, from $304 million, or $2.58 per share, a year earlier. Adjusted earnings per share were $3.66, up from $2.98, while sales increased to $3.72 billion from $3.27 billion. The board declared a quarterly cash dividend of $1.62 per share, an 8% increase, payable on August 3 to shareholders of record as of July 10. The new buyback program, authorized on June 24, replaces the previous authorization. For fiscal 2027, the company expects sales of $13.60 billion to $13.75 billion and earnings per share of $11.10 to $11.35.

Shares of Bloomin' Brands and Portillo's rose sharply in afternoon trading as WTI crude oil fell below $70 per barrel, easing pressure on consumer wallets. Bloomin' Brands gained 4.6% and Portillo's jumped 5.8%, benefiting from the broader rally in restaurant stocks triggered by the 3% drop in oil prices to their lowest since early March. The decline in energy costs acts as a de facto tax cut for middle- and lower-income consumers, boosting discretionary spending on dining out. The restaurant sector, particularly quick-service chains, is highly sensitive to gas prices, and cheaper fuel provides a much-needed catalyst for traffic recovery amid recent slowdowns due to inflation fatigue. Other stocks in the sector also surged, with Wendy's up 30% on retail enthusiasm and a CFO change, while McDonald's and Darden benefited from the macro tailwind.

Brinker International shares rose 3.4% after WTI crude fell below $70 per barrel, easing pressure on consumer wallets. Oil prices dropped 3% to their lowest since early March, acting as a de facto tax cut for middle- and lower-income consumers. The broader restaurant sector, including quick-service and casual dining names like McDonald's and Darden, benefited from the macro tailwind. Cheaper energy provides a much-needed catalyst for traffic recovery, though wage inflation remains a risk to restaurant operating margins. Brinker's CEO recently expressed confidence, citing 20 consecutive quarters of comparable sales growth at Chili's, and an analyst at TD Cowen raised the price target to $192.

Shares of casual salad chain Sweetgreen jumped 6.1% in afternoon trading after WTI crude fell below $70 per barrel, easing pressure on consumer wallets. Oil prices dropped 3% to their lowest levels since early March, acting as a de facto tax cut for middle- and lower-income consumers. The broader quick-service and casual dining sector, including McDonald's and Darden, also benefited from the macro tailwind, with Wendy's surging 30% on retail enthusiasm and a CFO change. Cheaper energy provides a much-needed catalyst for traffic recovery, though wage inflation remains a risk to restaurant operating margins. Sweetgreen is up 26.7% year-to-date but at $8.78 per share remains 46% below its 52-week high of $16.26 from July 2025.

Krispy Kreme shares surged 8.6% in afternoon trading after WTI crude fell below $70 per barrel, easing pressure on consumer wallets. Oil prices dropped 3% to their lowest levels since early March, acting as a de facto tax cut for middle- and lower-income consumers. The broader quick-service and casual dining sector, including McDonald's and Darden, also benefited from the macro tailwind, while Wendy's surged 30% on retail enthusiasm and a CFO change. Cheaper energy provides a much-needed catalyst for restaurant traffic recovery, though wage inflation remains a risk to operating margins.

On Thursday, June 25, investors will watch quarterly results from Darden Restaurants, McCormick, and BlackBerry, along with the release of the Personal Consumption Expenditures index, the Federal Reserve's preferred inflation gauge. Economists forecast the PCE ticked up slightly on a month-over-month basis. Darden is expected to report same-store sales growth driven by menu pricing, marketing initiatives, and steady traffic at Olive Garden and Longhorn Steakhouse. McCormick's sales are anticipated to benefit from the addition of McCormick de Mexico, while organic growth remains largely price-driven, and investors will listen for commentary on the planned combination with Unilever's food business. BlackBerry's first-quarter results will be scrutinized for signs of improving profitability and positive cash flow, with attention on management's outlook and whether software growth can offset weakness in other segments.