Newscasts - Olive Garden-owner Darden hikes sales forecast; shares jump

Shake Shack

19/12/2024 19:56

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_7ekufha6&referenceId=tag:reuters.com,2024:newsml_RW840919122024RP1_930&pageId=Newscasts
Source: 'Reuters - Business videos'

Description: Darden Restaurants raised its annual sales forecast on Thursday,
banking on higher menu prices and more people dining at its chains including
LongHorn Steakhouse and Olive Garden in the holiday season, sending its shares
higher. Lisa Bernhard has more.
Short Link: https://refini.tv/3P4TxTp

Video Transcript:

Shares of Darden Restaurants soared as much as 18% on Thursday, after the
company raised its annual sales forecast, as holiday diners flock to its
popular restaurants, including Olive Garden, despite higher prices. Same-store
sales at Olive Garden rose 2%, after three straight quarters of decline. And
sales at the company's LongHorn Steakhouse chain rose 7.5%. Higher menu prices
combined with steady foot traffic have helped Darden maintain profits, even in
the face of rising costs, which include elevated meat prices and higher worker
wages. Rival chains such as Shake Shack and Chipotle have also grown in
popularity, as escalating fast-food prices have narrowed the cost gap with
casual dining restaurants. Easing inflation has also prompted middle and
higher-income consumers to dine out more. For the full year, Darden expects
sales of more than $12 billion, topping its previous estimate