Darden Stock Pops After Teaming Up With Uber Delivery: What to Know
Darden Restaurants' Q1 earnings came up short of expectations, but bulls are cheering the Olive Garden parent's new food delivery partnership with Uber.


Darden Restaurants (DRI) stock is soaring Thursday after the company announced a new partnership with Uber Technologies (UBER) for home food delivery. This is helping offset the Olive Garden parent's top- and bottom-line miss for its fiscal first quarter.
In the three months ended August 25, Darden's revenue increased 1% year-over-year to $2.76 billion, driven by the addition of 42 net new restaurants. This helped offset a 1.1% decline in same-restaurant sales. Its earnings per share (EPS) were down 1.7% from the year-ago period to $1.75.
"We operate in a very dynamic, competitive industry and we have proven we can successfully navigate challenging environments due to our strategy," said Darden CEO Rick Cardenas in a statement. "While we fell short of our expectations for the first quarter, I firmly believe in the strength of our business. I am confident in the actions all our brand teams are taking to address their guests' needs, which do not compromise the long-term health of our business for short-term benefits."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results also fell short of analysts' expectations. Wall Street was anticipating revenue of $2.8 billion and earnings of $1.83 per share, according to Yahoo Finance.
Even though its first-quarter earnings came in below estimates, Darden reiterated its full-year outlook, which calls for earnings per share in the range of $9.40 to $9.60.
"The significant step down in traffic during July, led to our first-quarter earnings being lower than expected," said Darden Chief Financial Officer Raj Vennam. "Following the softness in July, our sales trend has continued to improve. Considering this recovery as well as the planned initiatives to support the remainder of the fiscal year, we are reiterating our guidance for fiscal 2025."
Darden teams up with Uber
In a separate press release, Darden announced a new partnership with Uber for home food delivery. The collaboration will begin with select Olive Garden locations in late 2024 and will expand nationwide by May 2025.
"Guests have been asking us for home delivery options and they continue to show they are willing to pay for the convenience," Cardenas said. “As we continued to evaluate delivery, it was important for us to find a way to address this guest need state without disrupting the team member or guest experience and without compromising our competitive advantages and simple operating model."
The executive added that it believes Uber is a partner that shares the same vision and can meet the company's expectations. Darden did not indicate if or when its other brands would join the program.
Is DRI stock a buy, sell or hold?
Heading into today's session, Darden Restaurants was flat for the year to date on a total return basis (price change plus dividends). Yet, Wall Street remains bullish on the consumer discretionary stock.
According to S&P Global Market Intelligence, the consensus recommendation among the analysts following the stock that it tracks is a Buy. Meanwhile, the average price target of $170.18 represents a slight discount to where the stock is trading after Thursday's surge.
Financial services firm Oppenheimer is one of those with an Outperform rating (equivalent to a Buy) on DRI, along with an above-average $182 price target.
"We continue to believe DRI represents the best-in-class investment opportunity in casual dining with its reliable earnings model, unique scale advantages, and a strong management team with an under-promise, over-deliver mentality," said Oppenheimer analyst Brian Bittner in a September 16 note.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Married? Five Ways to Ensure Your Estate Plans Work in Tandem
Getting on the same page now means fewer potential problems when it counts.
By Kiplinger Advisor Collective
-
12 Investments No Retiree Should Make
In retirement, when it's wise to take fewer risks with your nest egg, some investments are just nuts.
By David Rodeck
-
Before You Invest Like a Politician, Consider This Dilemma
As apps that track congressional stock trading become more popular, investors need to take into consideration some caveats.
By Ryan K. Snover, Investment Adviser Representative
-
How to Put Together Your Personal Net Worth Statement
Now that tax season is over for most of us, it's the perfect time to organize your assets and liabilities to assess your financial wellness.
By Denise McClain, JD, CPA
-
Stock Market Today: Trump Retreats, Markets Rejoice
Stocks rally, yields soften, the dollar rises, and even beaten-down names enjoy the wages of potential trade peace.
By David Dittman
-
Tesla Stock Pops as Elon Musk Promises DOGE Draw Back
Tesla reported a sharp drop in first-quarter earnings and sales, as the EV maker suffered a backlash to its CEO's political ambitions.
By Karee Venema
-
Bouncing Back: New Tunes for Millennials Trying to Make It
Adele's mournful melodies kick off this generation's financial playlist, but with the right plan, Millennials can finish strong.
By Alvina Lo
-
Early-Stage Startup Deals: How Do Convertible Notes Work?
Some angel investors support early startups by providing a loan in exchange for a convertible note, which includes annual interest and a maturity date.
By Murat Abdrakhmanov
-
Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
By Karee Venema
-
How Can Investors Profit From AI's Energy Use?
Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
By Jacob Schroeder