Darden Restaurants raises FY26 outlook

What happened: Darden Restaurants, Inc. (DRI) boosted its fiscal year 2026 outlook on Thursday, raising net earnings from continuing operations guidance to $9.35 to $9.55 per share, up from $9.15 to $9.35 previously. This follows strong quarterly results from FedEx Corporation (FDX) and PepsiCo Inc. (PEP), both of which beat earnings estimates and raised guidance. FedEx projected fiscal 2026 revenue growth of 6% to 6.5%, while PepsiCo affirmed its core earnings per share growth guidance of 5% to 7%.

Market impact: This narrative positively impacts the restaurant and consumer staples sectors. Darden's raised outlook signals increased consumer spending, benefiting the broader restaurant industry. FedEx's strong performance and raised guidance indicate a robust economy, driving demand for consumer goods and services, including those from PepsiCo. This narrative also suggests a healthy supply chain, as FedEx's performance is a key indicator of global trade activity.

What to watch next: Investors should monitor Darden's fiscal fourth quarter earnings, due in June, for confirmation of its raised guidance. Additionally, the upcoming U.S. GDP growth rate data, scheduled for release in late April, will provide insight into the overall economic health and consumer spending trends. Lastly, FedEx's fiscal fourth quarter results, due in May, will offer further clarity on global trade dynamics and the company's ability to meet its raised guidance.