Olive Garden-owner Darden partners with Uber for delivery; shares jump
Sept 19 (Reuters) -Olive Garden-owner Darden Restaurants DRI.N said on Thursday it has entered into a delivery deal with Uber Technologies UBER.N, 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 $1.75 per share for first quarter, below analysts' average estimate of $1.83 per share, according to LSEG data.
The company posted quarterly net sales of $2.76 billion, compared with estimates of $2.80 billion.
Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shreya Biswas
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
