Darden Restaurants, Inc. (NYSE: DRI) Earnings Report Highlights

• Earnings Per Share (EPS) of $1.97, slightly below the estimated $2 but an improvement from the previous year.
• Revenue reached approximately $3.04 billion, surpassing expectations and indicating a positive trend in Darden's earnings performance.
• The company's Price-to-Earnings (P/E) ratio is approximately 21.04, reflecting a strong market position despite a high debt-to-equity ratio of approximately 2.57.

Darden Restaurants, Inc. (NYSE: DRI), the parent company of popular dining chains like Olive Garden, reported its earnings for the first quarter of fiscal 2026 on September 18, 2025. The company achieved an earnings per share (EPS) of $1.97, slightly below the estimated $2. Despite this, Darden's revenue reached approximately $3.04 billion, surpassing expectations.

The reported EPS of $1.97, although below the Zacks Consensus Estimate, marks an improvement from the $1.75 per share reported in the same quarter last year. This growth indicates a positive trend in Darden's earnings performance. The company's strategic focus and effective execution of competitive advantages have been key drivers of this success, as highlighted by Darden's President and CEO, Rick Cardenas.

Darden's financial metrics provide further insights into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 21.04, reflecting the market's valuation of its earnings. Additionally, the price-to-sales ratio stands at about 1.83, indicating how the market values its revenue. These figures suggest a relatively strong market position.

Despite the earnings miss, Darden has increased its revenue growth forecast for fiscal 2026. The company's enterprise value to sales ratio is around 2.30, and its enterprise value to operating cash flow ratio is approximately 16.29. These ratios provide insights into Darden's valuation relative to sales and cash flow, indicating a solid financial foundation.

However, Darden's debt-to-equity ratio is notably high at approximately 2.57, suggesting a significant reliance on debt financing. The current ratio is around 0.42, indicating the company's ability to cover short-term liabilities with its short-term assets. Despite these challenges, Darden's earnings yield of about 4.75% offers a perspective on the return on investment, highlighting its potential for growth.