Cheddar’s tests direct delivery with Uber partnershi

Published 20/03/2025, 14:14
Cheddar’s tests direct delivery with Uber partnershi

ORLANDO, Fla. - Darden Restaurants, Inc. (NYSE: DRI), the $22 billion restaurant giant with strong financial health according to InvestingPro analysis, has announced the initiation of a pilot delivery program at Cheddar’s Scratch Kitchen, partnering with Uber Technologies, Inc. (NYSE: UBER). This move follows a successful implementation of a similar strategy at Olive Garden, another Darden brand.

Currently, the pilot is operational in 10 Cheddar’s locations, where customers can place delivery orders via the restaurant’s website and mobile app. Uber Direct, part of Uber’s national delivery network, is responsible for the actual delivery process. The expansion comes as Darden maintains steady growth, with revenue increasing by 5.14% over the last twelve months.

The decision to expand delivery options at Cheddar’s was influenced by the positive outcomes from the Olive Garden pilot. "We learned a lot from the initial pilot at Olive Garden, and that, combined with the success of the full rollout, gave us confidence to quickly move to piloting delivery at Cheddar’s," said Chris Chang, Darden’s Chief Information Officer.

Uber is also optimistic about the collaboration. "We’ve heard excellent feedback from Olive Garden operators on the benefits and ease of integrating Uber Direct into their operations, and are confident our teams can deliver the same benefits for Cheddar’s operators, their team members, and guests," commented Sarfraz Maredia, Vice President of Delivery, Head of Americas at Uber Eats.

Should the pilot prove successful, Cheddar’s intends to expand the delivery service across more locations within their network. This partnership is part of a broader trend in the restaurant industry to adapt to evolving customer needs by integrating on-demand delivery services.

The information provided in this article is based on a press release statement from Darden Restaurants, Inc. According to InvestingPro, Darden currently trades above its Fair Value, with 9 analysts recently revising their earnings expectations downward for the upcoming period. For deeper insights into Darden’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Darden Restaurants reported a 6.2% increase in total sales, reaching $3.2 billion for its third fiscal quarter ending February 23, 2025. This growth was driven by a 0.7% increase in same-restaurant sales and revenue from newly acquired Chuy’s restaurants, alongside 40 new restaurant openings. The company’s adjusted diluted net earnings per share rose by 6.9% to $2.80. Darden’s Board of Directors declared a quarterly cash dividend of $1.40 per share, payable on May 1, 2025. Truist Securities recently raised its price target for Darden to $212, maintaining a Buy rating, citing an expected acceleration in same-store sales. Stifel also maintained a Buy rating with a $205 target, noting strong performance from LongHorn Steakhouse. KeyBanc Capital Markets kept an Overweight rating with a $200 target, adjusting its earnings estimates due to mixed sales projections.

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