Olive Gardens owner sees stock surge as it gives upbeat sales forecast, discloses Uber delivery deal

Olive Garden’s parent company Darden Restaurants saw its stock surge 8.5% on Thursday after it said sales have lately recovered following a weak summer and announced a new delivery partnership with Uber.Darden reported weaker-than-expected earnings on Thursday, but it reaffirmed its full-year outlook and said sales have been improving since the quarter ended Aug.25.“While we fell short of our expectations for the first quarter, I firmly believe in the strength of our business,” CEO Rick Cardenas said in a statement.

“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.”The company also announced that it had signed an exclusive two-year contract with Uber Technologies, reversing its prior aversion to third-party delivery services.Customers will be able to order Olive Garden fan-favorites — like their pasta and breadsticks — through the Olive Garden app.Uber’s network of drivers will be used to deliver the food.“Guests have been asking us for home delivery options and they continue to show they are willing to pay for the convenience,” Cardenas said in a statement.Dish prices will reflect in-store prices and customers will pay a delivery fee that will average $7 per order, according to The Wall Street Journal.The company’s shares were down 1.9% this year prior to Thursday’s boost as the restaurant industry has struggled to draw back inflation-battered customers who continue to eat in and scrimp on dining.

Olive Garden same-store sales dropped 2.9%.Subscribe to our daily Business Report newsletter! Please provide a valid email address.

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Like many fast-service restaurants, Olive Garden is turning to deals to win over customers.The company will be bringing its ...