08:56 AM EDT, 09/18/2025 (MT Newswires) -- Darden Restaurants ( DRI ) reported fiscal first-quarter earnings below market expectations on Thursday, although the restaurant operator lifted its full-year sales growth outlook.

Overall sales are now anticipated to increase by 7.5% to 8.5% for fiscal 2026, up from the company's previous projections for a gain of 7% to 8%. Same-restaurant sales are pegged to grow by 2.5% to 3.5%, reflecting a higher bottom end versus the prior guidance of 2% growth. The current consensus on FactSet is for sales of $13.08 billion and same-store sales to increase by 3.5%.

The Olive Garden ( DRI ) parent continues to expect adjusted earnings to come in between $10.50 and $10.70 per share, while the Street is looking for $10.69.

For the three-month period ended Aug. 24, Darden posted adjusted EPS of $1.97, up from $1.75 the year before, but below the average analyst estimate on FactSet of $2. Sales climbed 10% to $3.04 billion, in line with the Street's view. The stock fell 6.6% in the most recent premarket activity.

"We had a strong start to the fiscal year with same-restaurant sales and earnings growth that exceeded our expectations," Chief Executive Rick Cardenas said in a statement.

Same-store sales inclined 4.7% on a consolidated basis, higher than the market consensus of 4.4% growth. Same-restaurant sales rose 5.9% at Olive Garden ( DRI ) and advanced 5.5% at LongHorn Steakhouse. The fine dining segment edged down 0.2%.

Total operating costs and expenses rose to $2.71 billion from $2.49 billion in the prior-year period.

Darden opened 22 net new restaurants during the quarter and plans to open about 65 restaurants in fiscal 2026. It previously expected to launch 60 to 65 new restaurants during the current fiscal year.