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
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.
-
Social Security Will Continue Sending Paper Checks, Reversing Course
The Social Security Administration has backed off from plans to eliminate paper checks. However, it will only send checks in the mail as a matter of last resort.
-
Ask the Editor — Tax Questions on Four New Tax Deductions
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on four new tax deductions in the "One Big Beautiful Bill."
-
How Divorced Retirees Can Maximize Their Social Security Benefits: A Case Study
Susan discovered several years after she filed for Social Security that she is eligible to receive benefits based on her ex-spouse's earnings record. This case study explains how her new benefits are calculated and what her steps are to claim some of the money she missed.
-
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every Age
From toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
-
I'm an Investment Pro: Here's How Alternatives Could Inject Stability and Growth Into Your Portfolio
Alternative investments can often avoid the impact of volatility, counterbalancing the ups and downs of stocks and bonds during times of market stress.
-
Dow Bleeds Red Due to Big Blue: Stock Market Today
Six of the official GICS sectors were in the green, led by communications services, technology and energy stocks.
-
July Fed Meeting: Live Updates and Commentary
The July Fed meeting could be a lively economic event, with Wall Street keyed into what Fed Chair Powell has to say about interest rates and President Trump.
-
A Contrarian Approach Pays Off for This Small-Cap Fund
Small-cap stocks have been hit hard by tariff worries, but this T. Rowe Price fund has outperformed thanks to its manager's against-the-tide approach.
-
A Financial Planner's Guide to Unlocking the Power of a 529 Plan
529 plans are still the gold standard for saving for college, especially for affluent families, though they are most effective when combined with other financial tools for a comprehensive strategy.
-
An Investment Strategist Takes a Practical Look at Alternative Investments
Alternatives can play an important role in a portfolio by offering different exposures and goals, but investors should carefully consider their complexity, costs, taxes and liquidity. Here's an alts primer.