Stock Rises as Company Backs Full-Year Guidance and Unveils Olive Garden Delivery Plans

  • Darden Restaurants Inc.’s Q1 earnings miss estimates due to significant drop in traffic in July
  • Stock rises 11% premarket as company reiterates full-year guidance
  • Partnership with Uber Technologies Inc. for Olive Garden menu delivery via Uber Direct announced
  • Pilot program set to launch at limited Olive Garden restaurants in late 2024, national expansion by May 2025
  • Net income of $207.2 million, adjusted EPS $1.75 below FactSet consensus
  • Same-restaurant sales down 1.1% at Olive Garden, up 3.7% at LongHorn Steakhouse, fine dining segment down 6%

Darden Restaurants Inc., the parent company of Olive Garden, LongHorn Steakhouse, and other restaurant chains, reported a miss in its fiscal first-quarter earnings due to a significant drop in traffic in July. Despite this, the stock rose 11% premarket as the company reiterated its full-year guidance. The Orlando, Fla.-based firm had net income of $207.2 million and adjusted EPS of $1.75, both below estimates. A partnership with Uber Technologies Inc. for Olive Garden menu delivery via Uber Direct was also announced, set to launch in a pilot program at select locations by May 2025.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Darden Restaurants Inc.’s fiscal first-quarter earnings, its partnership with Uber Technologies Inc., and the CEO’s outlook on the company’s performance. It also includes relevant financial data such as net income and sales figures. However, it does not include any personal opinions or biased statements.
Noise Level: 2
Noise Justification: The article provides relevant information about Darden Restaurants Inc.’s fiscal first-quarter earnings and their partnership with Uber Technologies Inc. for food delivery. It also includes the company’s guidance for the full year and CEO’s comments on navigating challenging environments. The information is concise and stays on topic, providing actionable insights about the company’s performance and future plans.
Public Companies: Darden Restaurants Inc. (DRI), Uber Technologies Inc. (UBER), S&P 500 (SPX)
Private Companies: Chuy’s
Key People: Raj Vennam (Chief Financial Officer), Rick Cardenas (CEO)

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Financial Relevance: Yes
Financial Markets Impacted: Darden Restaurants Inc.’s stock and Uber Technologies Inc.
Financial Rating Justification: The article discusses Darden Restaurants’ financial performance, its guidance for the full year, and a partnership with Uber Technologies Inc. for food delivery, which can impact both companies’ stocks and financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: The market move size mentioned in this article is a 11% rise in Darden Restaurants Inc.’s stock price premarket Thursday.
Sector: Restaurants
Direction: Up
Magnitude: Large
Affected Instruments: Stocks

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