Olive Garden-owner Darden partners with Uber for delivery; shares jump

admin admin | 09-21 00:20

Same-store sales at its Olive Garden business fell 2.9%, while they fell 6% in its fine dining restaurants.
Olive Garden-owner Darden Restaurants said on Thursday it has entered into a delivery deal with Uber Technologies, sending its shares up about 7% in premarket trading.

The partnership is set to kick off as a pilot program at some Olive Garden locations in the United States in late 2024 and expand to all 900 outlets across the country by May 2025 after a successful trial, Darden said, without giving other details.

"Guests have been asking us for home delivery options and they continue to show they are willing to pay for the convenience," CEO Rick Cardenas said, adding the deal would help address customer needs without compromising on competitive advantages.

Darden missed its first-quarter sales and profit estimates on Thursday, hurt by sequential decline in customer traffic amid sticky inflation.

The restaurant operator, which also owns LongHorn Steakhouse, posted a 1.1% drop in same-store sales in the quarter ended Aug. 25, compared with a 5% rise a year ago, as customers cut back on dining out.

The restaurant industry has been struggling with dwindling demand as inflation-weary consumers became cautious of their expenses and have been increasingly eating at home.

"The significant step down in traffic during July, led to our first quarter earnings being lower than expected," said CFO Raj Vennam, as the company reiterated its annual forecasts.

Same-store sales at its Olive Garden business fell 2.9%, while they fell 6% in its fine dining restaurants.

Darden reported an adjusted profit of USD 1.75 per share for first quarter, below analysts' average estimate of USD 1.83 per share, according to LSEG data.

The company posted quarterly net sales of USD 2.76 billion, compared with estimates of USD 2.80 billion.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.


ALSO READ

Hyundai Motor India lists with record IPO, commits to Indian market with new tech and EV plans

As part of its effort to introduce clean mobility solutions for Indian buyers, Hyundai will launch f...

auto | 5 hours ago

Skoda Auto Volkswagen India plants over 7 lakh trees in Maharashtra for ecological restoration

Additionally, SAVWIPL has installed 18.5 MWp of rooftop solar power at its Chakan facility, which of...

auto | 5 hours ago

Mega Corporation launches Lendingo to enhance EV financing solutions

Mega Corporation on Monday announced the launch of a new division, Lendingo. Mega Corporation on Mon...

auto | 5 hours ago

GreenLine accelerates decarbonisation efforts with 1,000 LNG trucks by March 2025

The government in a recent draft policy proposed to convert a third of long-haul trucks into LNG pow...

auto | 5 hours ago

Remsons Industries acquires 51% stake in BEE Lighting to enhance automotive lighting solutions

Established in 2006, BEE Lighting specialises in automotive headlamps, rear lamps, and various exter...

auto | 5 hours ago

EV Recharge partners with ZEVO for mobile EV charging solutions

EV Recharge’s technology can charge vehicles from 0% to 80% in just 20 minutes, a significant improv...

auto | 5 hours ago