Olive Garden Parent Firm and Uber Cook Up Delivery Partnership, Stocks Gain
UTED
PTD
OLE
CEO
GAINS
Darden Restaurants, Inc. (NYSE: DRI), the parent company of Olive Garden, has announced a new multi-year partnership with Uber Technologies (NYSE: UBER) to introduce on-demand delivery services. The collaboration, set to begin in late 2024, aims to address growing customer demand for home delivery options while maintaining control over guest experience and data. Both companies’ stocks saw gains in premarket trading after the announcement.
Darden Partners with Uber, to Launch Pilot Program at Select Locations
The partnership will initially focus on Olive Garden, with a pilot program launching at select locations in late 2024. Darden plans to expand the service to all 900 company-owned Olive Garden restaurants across the United States by May 2025. Customers will be able to place orders through Olive Garden’s website and app, with deliveries facilitated by Uber Direct using its national delivery network.
Darden CEO Rick Cardenas emphasized the importance of preserving the team member and guest experience while addressing customer needs.
“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,” Cardenas stated.
DRI and UBER See Gains in Premarket Trading
The announcement comes as Darden reported its fiscal 2025 first-quarter results, which fell short of analysts’ expectations. The company saw a 1.1% drop in same-store sales, with Olive Garden experiencing a 2.9% decline. Despite these challenges, investors responded positively to the Uber partnership news, with Darden’s stock price surging 8.41% to $172.52 in premarket trading.
Uber also saw a boost in its stock price, rising 1.97% to $74.95 in premarket trading. The partnership represents an expansion of Uber’s delivery business and secures a major player in the restaurant industry as a client. Analysts have maintained largely positive outlooks on Uber stock, with many rating it as a “Strong Buy” or “Buy.”
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
The post Olive Garden Parent Firm and Uber Cook Up Delivery Partnership, Stocks Gain appeared first on Tokenist.
