Jim Cramer Prefers Brinker (EAT) Over Darden (DRI) Ahead of Earnings

Jim Cramer expressed his preference for Brinker International (EAT) over Darden Restaurants (DRI) during an episode of Mad Money on September 18. He praised Darden's Olive Garden, stating that it is a "gold mine," but ultimately preferred Brinker due to its stronger strategy, with the "$11 special" being particularly appealing. Darden reported $13.21 billion in fiscal 2026 sales, up 9.4%, while same-restaurant sales rose 4.5%.

Olive Garden's comparable sales grew by 4% for the year but decelerated to 2.4% in the fourth quarter, compared to 9.5% growth at LongHorn Steakhouse. Darden expects to generate $13.60 billion to $13.75 billion in fiscal 2027 sales and diluted EPS of $11.10 to $11.35. Brinker's latest results showed faster comparable-sales growth, with fiscal 2026 company comparable sales up 8.1%, including a 9.2% increase in Chili's and a 5.6% increase in fourth-quarter Chili's comparable sales.

Brinker anticipates fiscal 2027 revenue between $6.15 billion and $6.27 billion and adjusted EPS of $12.60 to $13.40.