Eric Andrew Gonzalez's questions to DARDEN RESTAURANTS (DRI) leadership • Q1 2026
Question
Eric Andrew Gonzalez asked about Darden's observations on consumer income perspectives, specifically if they are gaining share among lower-income consumers or seeing trade-in from higher-income groups. He also inquired about the implications of the commodity discussion for store-level margins and the likelihood of achieving modest margin expansion embedded in the guidance.
Answer
CEO Rick Cardenas noted that all casual dining brands saw increased visits year-over-year from guests across all income groups, especially higher-income, suggesting both trade-down and trade-up. CFO Raj Vennam referred to Darden's long-term framework of 0 to 20 basis points earnings after tax (EAT) growth, indicating that achieving this goal by investing in guests is the priority, even if segment profit margins are down.