Darden Restaurants Inc. (NYSE: DRI) stock is trading lower Friday after the company reported fiscal 2027 first-quarter results Thursday that narrowly missed Wall Street estimates for both revenue and earnings.

Revenue rose 5% year over year to $3.20 billion, missing the analyst consensus estimate of $3.206 billion. Darden reported earnings of $2.05 per share, missing the analyst consensus estimate of $2.06 per share.

Blended same-restaurant sales rose 3.1% on a fiscal calendar basis and 3.2% on a comparable calendar basis. The company reaffirmed its full-year outlook. Darden continues to expect diluted EPS from continuing operations of $11.10 to $11.35.

Here are some key analyst actions following the results.

• Guggenheim analyst Gregory Francfort reiterated a Buy rating and maintained a $235 price forecast.
• BTIG analyst Peter Saleh maintained a Buy rating and a $235 price forecast.
• Freedom Capital Markets analyst Lynne Collier maintained a Buy rating and raised the price forecast to $260 from $255.
• Stephens & Co. analyst Jim Salera reiterated an Equal-Weight rating and maintained a $220 price forecast.
• Mizuho analyst Nick Setyan maintained an Outperform rating and raised the price forecast to $245 from $235.
• Citigroup analyst Jon Tower maintained a Buy rating and lowered the price forecast to $247 from $248.
• BMO Capital analyst Andrew Strelzik maintained a Market Perform rating and lowered the price forecast to $220 from $225.

Guggenheim Sees Improving Traffic Trends

Guggenheim said Darden continues to gain market share as industry capacity rationalization supports larger restaurant operators.

Francfort noted that management reaffirmed its inflation assumptions and EPS outlook. Traffic trends also improved during the quarter and accelerated further into September.

The analyst said Darden has outperformed peer Texas Roadhouse, Inc. (NASDAQ: TXRH) over the past month as Olive Garden trends strengthened.

Guggenheim sees potential upside if Olive Garden comparable sales move toward 3%. However, that scenario depends on continued strength in Darden's other businesses, stable oil prices, contained labor and cost inflation, and further easing in steak costs.

The firm maintained its estimates. It expects Darden to sustain mid-single-digit revenue growth and mid- to high-single-digit EBITDA growth.

BTIG Highlights LongHorn Strength

BTIG said Darden's 3.2% same-store sales growth on a calendar basis was broadly in line with its 2.9% estimate and Wall Street expectations.

Olive Garden comparable sales rose 1%, about 50 basis points below BTIG's forecast. LongHorn Steakhouse sales climbed 6.8%, beating the firm's estimate by about 130 basis points, Saleh said.

EPS increased 4.1% year over year to $2.05. However, it came in slightly below BTIG's $2.08 estimate. Saleh attributed the difference to restaurant margins that were about 25 basis points below expectations and slightly higher general and administrative expenses.

Menu pricing averaged 3.7% during the quarter, roughly in line with inflation across Darden's portfolio.

BTIG expects pricing to moderate toward the low-to-mid 2% range by year-end. It forecasts commodity inflation of about 3% for the full year.

Freedom Raises Price Forecast

Freedom Capital Markets described Darden's fiscal first-quarter 2027 performance as solid. Revenue was in line with its expectations, while EPS came in 11 cents above its estimate despite temporary headwinds at Olive Garden.

All operating segments posted positive comparable sales, led by LongHorn Steakhouse and Yard House, Collier said.

The analyst also highlighted Darden's reaffirmed fiscal 2027 outlook. The company expects sales of $13.6 billion to $13.75 billion, same-store sales growth of 2.5% to 3.5% and 75 to 80 new restaurant openings.

Darden also expects about $875 million in capital spending, roughly 3% inflation, EBITDA of $2.26 billion to $2.29 billion and an effective tax rate of about 13.5%. Adjusted EPS is expected to range from $11.10 to $11.35.

Collier continues to view Darden's pricing discipline as a competitive advantage.

Freedom raised its fiscal 2027 EPS estimate to $11.30 from $11.23. It also increased its fiscal 2028 estimate to $12.40 from $12.25.

Stephens Flags Olive Garden Debate

Stephens said Olive Garden and LongHorn Steakhouse both showed sequential deceleration from the fiscal fourth quarter of 2026. However, LongHorn remains the strongest performer in the portfolio.

Fine Dining posted another quarter of positive comparable sales but again missed Wall Street expectations amid softer business spending, Salera said.

Portfolio-wide comparable sales accelerated into September. Stephens also said Darden continues to outperform casual dining peers despite a weak industry backdrop.

Still, Salera said investors continue to debate the trajectory of Olive Garden traffic.

Stephens said Darden continues to outperform its casual dining peers and remains well positioned, but sees limited room for further valuation expansion. The firm said the stock appears fairly priced at current levels.

Stephens lowered its fiscal 2027 adjusted EPS estimate to $11.29 from $11.30 and cut its EBITDA estimate to $2.275 billion from $2.289 billion.

For fiscal 2028, the firm reduced its adjusted EPS estimate to $12.35 from $12.49 and lowered its EBITDA estimate to $2.440 billion from $2.459 billion.

Darden Price Action

DRI Price Action: Darden Restaurants shares were down 2.29% at $202.50 at the time of publication on Friday, according to market data.