Darden Restaurants (DRI) shares surged Thursday after the Olive Garden owner reported improving sales trends after a decline in July and announced a new delivery pilot with Uber (UBER).
The company reported fiscal first-quarter revenue rose year-over-year to $2.76 billion, thanks in part to a larger number of total restaurants. Net income climbed year-over-year to $207.2 million. Both slightly missed analysts' estimates compiled by Visible Alpha.
Darden's Results Hit By July Traffic Decline
Darden affirmed its full-year projections including earnings per share (EPS) of $9.40 to $9.60, as CFO Raj Vennam said the company has seen sales trends improve after a "significant step down" to foot traffic in July.
Darden also announced plans to pilot a delivery program with Uber starting later this year. In select markets, customers who order from the Olive Garden app or website will be able to get it delivered by an Uber Eats driver. The companies plan to expand the program nationally by May 2025 if the pilot is successful.
Darden shares jumped over 7% to $171.01 in early trading Thursday following the news and have gained about 4% since the start of the year.