Darden Restaurants Inc (NYSE:DRI) shares slid 10% to about $189 in early trading on Thursday after the restaurant chain reported mixed financial results for its first quarter 2026.
The company posted adjusted earnings per share for the period of $1.97, falling short of the $2 consensus analyst forecast provided by LSEG.
Darden saw its revenue for the quarter rise 10.4% to $3.04 billion, which was in line with expectations.
Sales results were boosted by the company’s acquisition of 103 Chuy's Tex Mex restaurants and 22 net new restaurants.
"We had a strong start to the fiscal year with same-restaurant sales and earnings growth that exceeded our expectations," Darden Restaurants CEO Rick Cardenas said in a statement.
Darden’s Q1 same-store sales improved 4.7% year over year, led by a 5.9% increase from its Olive Garden restaurants.
Revenue from its Olive Garden and LongHorn Steakhouse restaurants helped offset weakness in its fine-dining business, CNBC reported.
For fiscal 2026, Darden is forecasting revenue growth of 7.5% to 8.5%, up from its previous forecast of 7% to 8% growth.
It also reiterated its outlook for full-year adjusted earnings in a range of $10.50 to $10.70 per share.