Darden Restaurants DRI and Uber Technologies UBER have announced a strategic multi-year partnership to launch on-demand delivery services. The initiative will begin with Olive Garden, Darden's flagship brand, offering delivery options powered by Uber Direct, Uber’s expansive delivery network.
This collaboration is set to launch in late 2024, with a pilot program rolled out across selected Olive Garden locations. If successful, full national expansion to more than 900 company-owned Olive Garden restaurants is expected by May 2025.
Digital Ordering to Enhance Guest Satisfaction
This partnership will allow Olive Garden fans to order directly from the restaurant’s website and app with deliveries handled by Uber couriers. Importantly, the partnership will allow Olive Garden to retain control of guest data and insights, ensuring a seamless integration without disrupting the team member or guest experience.
For Darden, this move addresses increasing consumer demand for convenient home delivery. Rick Cardenas, Darden’s president and CEO, emphasized that customers are willing to pay for convenience and this partnership with Uber ensures that delivery services can be provided without compromising the brand’s efficient operating model.
Investors should view this collaboration as a strategic step toward capturing evolving consumer behaviors, especially in a digital-forward marketplace. With Uber’s logistics network powering Darden’s popular Olive Garden brand, both companies stand to benefit from this exclusive deal, driving customer satisfaction and potential market expansion.
DRI’s Price Performance
In the past three months, shares of the company have gained 12.4% compared with the industry’s growth of 4.8%. The company has been benefiting from strong off-premise offerings and digital initiatives. Also, the focus on strategic acquisitions bodes well. Going forward, the company intends to revamp its point-of-sale system to boost guest experience and manage off-premise offerings.
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DRI’s Zacks Rank & Key Picks
Darden currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.
Abercrombie & Fitch Co. ANF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ANF has a trailing four-quarter earnings surprise of 28%, on average. The stock has surged 164.5% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) indicates growth of 13.1% and 63.4%, respectively, from the year-ago period’s levels.
Boot Barn Holdings, Inc. BOOT currently sports a Zacks Rank of 1. BOOT has a trailing four-quarter earnings surprise of 7.1%, on average. The stock has gained 80.6% in the past year. The consensus estimates for BOOT’s fiscal 2025 sales and EPS indicate growth of 11.6% and 10.7%, respectively, from the year-ago period’s levels.
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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
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