Brian James Harbour's questions to DARDEN RESTAURANTS (DRI) leadership • Q1 2026
Question
Brian James Harbour asked about Darden's food cost contracting strategy, particularly for beef, and the visibility on future commodity outcomes. He also inquired about Olive Garden's new portion sizes, their impact on guest demographics, potential as a traffic driver, and any check dilution.
Answer
CFO Raj Vennam explained that Darden's beef coverage is currently less than typical (25% for the next six months) due to recent spikes in tender and ribeye prices, which are not believed to be sustainable. CEO Rick Cardenas noted that Olive Garden's lighter portion sizes are still early in testing but are expected to be a long-term traffic driver, potentially causing slight check dilution if guests trade down. Initial response shows increased affordability scores and satisfaction.