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Darden Restaurants (DRI) earnings and revenue breakdown

Latest: Q1 FY27 · 10-Q filed Oct 2, 2026 · Darden Restaurants (DRI) Q1 FY27 earnings results →

Q1 FY27 Revenue up 5% year over year to $3.2B · 7¢ of every $1 of revenue kept as net profit · operating margin 10.0%

Darden Restaurants made $3.2B in Q1 FY27 (+5% Y/Y). Operating margin 10.0%, net earnings $233M. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Oct 2, 2026.

Revenue$3.2B
Year over year+5%
Operating margin10.0%
Net earnings$233M
Operating cash flow$279M

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Darden Restaurants Q1 FY27 revenue breakdown: Sankey diagram of revenue, costs, profit and cash flow
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What changed this quarter

Revenue was $3.2B in Q1 FY27, up 5% year over year and down 14% from the previous quarter.

Gross margin was 18.8%, unchanged from Q1 FY26. Operating profit was $0.32B, a 10.0% margin (down 1.2 points year over year). Operating profit fell $0.02B even though revenue rose $0.16B versus Q1 FY26, so costs grew faster than sales. Operating expenses grew 21% against revenue growth of 5%. The fastest-growing cost line was Other operating costs (+50%). Net earnings were $0.23B, down 9% year over year. The effective tax rate was 12.9%.

Operating cash flow was $0.28B (down 19% year over year), 120% of net earnings. Non-cash charges added back $0.14B of depreciation and amortization and $0.03B of share-based compensation. Working capital and other items used $0.13B. Capital expenditures of $0.18B left free cash flow of $0.10B.

Quarterly history

Darden Restaurants revenue by quarterDarden Restaurants revenue by quarter$3.2BQ3 FY25$3.3BQ4 FY25$3.0BQ1 FY26$3.1BQ2 FY26$3.3BQ3 FY26$3.7BQ4 FY26$3.2BQ1 FY27
Darden Restaurants net earnings by quarterDarden Restaurants net earnings by quarter$323MQ3 FY25$304MQ4 FY25$258MQ1 FY26$237MQ2 FY26$307MQ3 FY26$405MQ4 FY26$233MQ1 FY27
QuarterFormFiledRevenueY/YOp. marginNet earningsOp. cash flow
Q1 FY2710-QOct 2, 2026$3.2B+5%10.0%$233M$279M
Q4 FY2610-KJul 24, 2026$3.7B+14%13.9%$405M$572M
Q3 FY2610-QMar 27, 2026$3.3B+6%12.1%$307M$618M
Q2 FY2610-QDec 30, 2025$3.1B+7%10.3%$237M$321M
Q1 FY2610-QSep 26, 2025$3.0B+10%11.1%$258M$342M
Q4 FY2510-KJul 18, 2025$3.3B+11%11.7%$304M$457M
Q3 FY2510-QApr 1, 2025$3.2B+6%13.2%$323M$588M

Charts

Darden Restaurants: revenue growth, year over year and quarter over quarterDarden Restaurants: revenue growth, year over year and quarter over quarterY/YQ/Q+6%Q3 FY25+11%+4%Q4 FY25+10%-7%Q1 FY26+7%+2%Q2 FY26+6%+8%Q3 FY26+14%+11%Q4 FY26+5%-14%Q1 FY27
Latest (Q1 FY27): Y/Y +5%, Q/Q -14%.
Darden Restaurants: where the cash came from (+) and went (−), TTM to Q1 FY27Darden Restaurants: where the cash came from (+) and went (−), TTM to Q1 FY27Operating cash flow$1.8BCapital spending−$735MBuybacks−$710MDividends−$702MOther financing$338MShares issued$36.2MAsset & business sales$34.0MOther investing−$22.2MNet borrowing (+) / repaid (−)−$18.2MNot reconciled−$7.1MCash drawn (+) / kept (−)−$3.1M
From the cash-flow statement as filed (SEC XBRL). Cash is fungible: the bars do not say which dollar paid for what.
Darden Restaurants: profit against cash, quarter by quarterDarden Restaurants: profit against cash, quarter by quarterNet incomeOperating cash flow$215M$389MQ2 FY25$323M$588MQ3 FY25$304M$457MQ4 FY25$258M$342MQ1 FY26$237M$321MQ2 FY26$307M$618MQ3 FY26$405M$572MQ4 FY26$233M$279MQ1 FY27
Latest (Q1 FY27): Net income $233M, Operating cash flow $279M.
Darden Restaurants: diluted shares by fiscal yearDarden Restaurants: diluted shares by fiscal year132MFY21129MFY22123MFY23121MFY24118MFY25116MFY26
-11.8% since FY21: buybacks shrank the count.
Darden Restaurants: long-term debt falling due (FY26)Darden Restaurants: long-term debt falling due (FY26)$500M2027$400M2028$350M2030$939MLater
Cash $220M, short-term investments —, long-term debt $1.6B at 2026-05-31.
Darden Restaurants in its industry: growth against margin (41 companies, SIC 5812)Darden Restaurants in its industry: growth against margin (41 companies, SIC 5812)revenue growth, year over year →↑ operating marginmedian +4%median 6%MCDARMKYUMCCMGQSRQSPYUMTXRHEATCAKEBLMNCBRLPLAYPZZABJRICAVAFWRGRRGBJACKDINJMKEPTLOWINGSTKSSGNDLSLOCOBH-AKRUSRICKBDLGENKNATHARKRGTIMLVOREBNNROMBTBDBABBDRI (+5%, 10%)
Retail-Eating Places; dot size is quarterly revenue; dashed lines are the industry's medians.

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📈Investments: gains and what it boughtinteractive

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🏭Its industry’s money flow (input-output)interactive

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About Darden Restaurants

Darden Restaurants, Inc. (“Darden,” the “Company,” “we,” “us,” or “our”) is a full-service restaurant company, and as of May 31, 2026, we owned and operated 2,202 restaurants through subsidiaries in the United States under the Olive Garden ® , LongHorn Steakhouse ® , Yard House ® , Ruth’s Chris Steak House ® (“Ruth’s Chris”), Cheddar’s Scratch Kitchen ® , The Capital Grille ® , Chuy’s ® , Seasons 52 ® , Eddie V’s Prime Seafood ® (“Eddie V’s”), Bahama Breeze ® , and The Capital Burger ® trademarks. As of May 31, 2026, we also had 167 restaurants operated by independent third parties pursuant to area development and franchise agreements, four restaurants operating under contractual agreements, and one restaurant that we jointly own with a third party and operate independently.

In its own words, from its 10-K, filed Jul 24, 2026.

Darden Restaurants against its Retail-Eating Places peers

The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: +5% against the peers' median +8%. Operating margin: 10.0% against the peers' median 13.0%.

CompanyQuarterRevenueY/YOp. margin
DRI Darden RestaurantsQ1 FY27$3.2B+5%10.0%
MCD McDonald'sQ3 2026$7.2B+1%50.2%
ARMK AramarkQ3 FY26$5.1B+9%4.3%
YUMC Yum China HoldingsQ3 2026$3.5B+8%13.0%
CMG Chipotle Mexican GrillQ3 2026$3.3B+10%13.7%
QSR Restaurant Brands InternationalQ3 2026$2.5B+3%27.6%
YUM Yum BrandsQ3 2026$2.1B+4%112.8%
TXRH Texas RoadhouseQ3 2026$1.6B+10%6.5%
EAT Brinker InternationalQ1 FY27$1.5B+9%10.2%

Source: Darden Restaurants 10-Q on SEC EDGAR · CIK 940944 · Retail-Eating Places

Guidance and outlook

Darden Restaurants Revenue: guidance against what was reportedDarden Restaurants Revenue: guidance against what was reportedguided rangereported (above / within / below)FY25$12.1BFY27
Met or beat 1 of 1 guided periods. Grey: the last range guided before the figures came out; dot: the reported figure.
Darden Restaurants Tax rate: guidance against what was reportedDarden Restaurants Tax rate: guidance against what was reportedguided rangereported (above / within / below)FY2511.5%FY2612.7%FY27
Met or beat 2 of 2 guided periods. Grey: the last range guided before the figures came out; dot: the reported figure.

13F: who owns DRI and who is buying

Largest holders of DRI (13F)Largest holders of DRI (13F)Capital World Investors$3.1BVanguard Group$2.6BBlackRock$2.0BVanguard Capital Management LLC$1.5BVanguard Portfolio Management LLC$1.1BState Street$1.0BWellington Management Group LLP$800MCharles Schwab Investment Managem…$765MRaymond James Financial$763MGeode Capital Management, LLC$711M
Funds' net buying of DRI by quarter (13F)Funds' net buying of DRI by quarter (13F)$256M2024-09$173M2024-12−$368M2025-03−$54.9M2025-06−$510M2025-09$587M2025-12−$101M2026-03$148M2026-06
Value of shares 13F filers added minus the value they sold, each quarter (quarters with most filings in).

More on DRI

History

Every quarter: Q1 FY27 results · Q4 FY26 results · Q3 FY26 results · Q2 FY26 results · Q1 FY26 results · Q4 FY25 results · Q3 FY25 results

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