Olive Garden parent company shrugs off concerns of plummeting consumer confidence because restaurant goers continue ‘to treat themselves and splurge’
From Yahoo Finance: 2025-03-20 19:19:00
Stock for Darden Restaurants, owner of Olive Garden and Longhorn’s, hit a 52-week high despite a weaker quarter due to consumer confidence remaining strong. CEO Rick Cardenas stated that economic concerns haven’t impacted dining out habits, with Darden predicting a 3% growth in same-store sales next quarter.
Investors were pleased with Darden’s optimistic outlook, causing a 7% stock increase. Despite missing growth expectations, Darden’s revenue rose by 6.2% to $3.2 billion, largely attributed to acquiring Chuy’s. The company anticipates continued consumer spending at its restaurants, prioritizing income growth over inflation levels.
Darden executives prioritize monitoring inflation levels over consumer confidence, aiming for income growth to outpace inflation. With expectations of increased disposable income, Darden projects people will choose dining out over other expenses. The company remains confident in sustained consumer spending and growth in same-store sales.