Newscasts - Darden posts upbeat quarter on casual dining demand

Darden Restaurants

20/06/2025 19:24

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Source: 'Reuters - Business videos'

Description: Darden Restaurants forecast annual same-store sales above estimates after strong quarterly results on Friday, banking on demand driven by food delivery and advertising efforts at its casual dining chains such as Olive Garden. Alex Cohen has more.

Short Link: https://refini.tv/4k1ZxcH

Video Transcript:

Shares of Darden Restaurants rose more than 2% to another all-time high Friday morning after it forecast annual same-store sales above estimates and posted strong quarterly results. The owner of Olive Garden and other chains is banking on demand driven by food delivery and advertising. The company also announced a new $1 billion share repurchase program and revealed plans to explore strategic alternatives for its Bahama Breeze brand. This move comes as the company, similar to other consumer-facing firms, looks to offload underperforming segments. CEO Rick Cardenas said on a call after the earnings release that consumers are willing to spend their hard-earned money on casual dining, and, "we think we're taking some wallets share from fast food and fast casual restaurants." Initiatives such as home deliveries with the help of Uber Direct and "buy one, take one" offerings at Olive Garden have further helped the restaurant chain operator. Profit in the previous quarter topped estimates due to moderate price hikes and lower input costs. However, Darden forecast annual earnings per share below estimates.