Darden Restaurants, Inc. (DRI) has seen its shares increase by 14.2% over the past three months, outpacing the 7.6% growth of the Zacks Retail – Restaurants industry. The company’s strong sales performance, particularly from major brands like Olive Garden and LongHorn Steakhouse, has been supported by effective pricing strategies and ongoing menu innovations. In Q2 of fiscal 2026, Olive Garden reported sales of $1.36 billion, a 5.4% year-over-year increase, while LongHorn Steakhouse saw a 9.3% rise to $775.9 million.
Despite this positive momentum, Darden faces challenges, including a downward revision of its 2026 EPS estimate from $10.61 to $10.58. Elevated beef and commodity costs pose near-term headwinds, contributing to margin pressures as the company has chosen to price below inflation to maintain customer traffic. The company opened 17 new restaurants in the last quarter and aims for 65-70 openings within the fiscal year, reflecting a steadfast growth strategy.
