Sept 19 (Askume) – Olive Garden owner Darden Restaurants (DRI.N) said on Thursday it has acquired Uber Technologies.(UBER.N) , whose shares rose nearly 7% in pre-market trading .
The partnership will begin in select Olive Garden stores in the US in late 2024 and expand to all 900 stores nationwide in May 2025 following a successful trial, Dutton said, without providing other details.
CEO Rick Cardenas said: “Guests have been asking us about home delivery options and they are expressing a willingness to pay for this convenience.” He added that the transaction will help satisfy customers without compromising competitive advantages.
Darden missed first-quarter sales and profit forecasts on Thursday, saying customer traffic declined sequentially amid steady inflation.
The restaurant operator, which also owns LongHorn Steakhouse, reported same-store sales declined 1.1% in the quarter ended Aug. 25, compared with a 5% increase in the same period last year as customers ate out less.
The restaurant industry is grappling with falling demand as inflation-stricken consumers become cautious about their spending and eating out.
Chief Financial Officer Raj Vennam reiterated his annual forecast, saying: “Our first quarter revenue was below expectations due to a significant decline in traffic in July.”
Same-store sales at the Olive Garden business fell 2.9% and same-store sales at fine-dining restaurants fell 6%.
Darden reported an adjusted profit of $1.75 a share in the first quarter, below analysts’ average estimate of $1.83 a share, according to LSEG data.
The company reported quarterly net sales of $2.76 billion, compared with expectations of $2.8 billion.
