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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free 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
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.
-
Savings Goal Calculator
Tools Want to know how much you need to save each month to reach your financial goals? Our calculator helps you build a realistic savings plan.
-
Cash vs. Mortgage: How to Pay for Your Second Home
Should you buy your second home outright or finance it with a loan? Weigh the pros, cons and tax implications before making the leap.
-
5 Top Tech Disruptors to Watch
multibagger stocks Big change catalyzed by top tech disruptors often leads to big growth.
-
Gray Divorce Can Throw Your Retirement a Curveball: What to Know
If you're entering retirement and going through a divorce at the same time, you've got some work to do to shore up your long-term financial security.
-
I'm a Real Estate Investing Expert: Optional 721 UPREIT DSTs Can Be the Best of Both Worlds
Before investing in any 721 UPREIT exchange, look for one that offers a straightforward, investor-friendly exit.
-
Markets Are Quiet Ahead of Fed Day: Stock Market Today
Investors, traders and speculators appear to be on hold amid an unusually fraught Fed meeting.
-
5 Multibagger Stocks With Amazing Returns in 2025
multibagger stocks As the term suggests, multibagger stocks multiply your money – gains of 1,200%, for example. Here's where to look for that kind of performance this year.
-
Investing Freebies: Perks You Get for Owning These Stocks
While the biggest investing returns come over the long term, these companies offer instant gratification for investors with several freebies and perks.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)
An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Optimize, Grow, Retain: The Power of Annual Client Reviews
Financial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.