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NEW YORK - Red Lobster has renewed its partnership with restaurant technology provider Olo Inc. (NYSE:OLO), a profitable technology company with nearly $300 million in annual revenue and impressive 23% year-over-year growth, after a brief period of using an in-house digital ordering solution, according to a press release issued Thursday. According to InvestingPro analysis, Olo’s stock has delivered a remarkable 99% return over the past year, suggesting strong market confidence in its business model.
The seafood restaurant chain, which initially partnered with Olo in 2017, cited the platform’s enhanced capabilities, cost-effectiveness, and ability to keep pace with evolving technology as reasons for returning to the service. With a solid balance sheet showing more cash than debt and a healthy current ratio of 7.9, Olo demonstrates the financial stability needed to maintain its technological edge.
The renewed partnership will follow a phased implementation approach. Red Lobster is currently rolling out Sentiment, Olo’s reputation management platform that aggregates guest feedback and provides AI-powered insights, across all locations. The company plans to launch Catering+, Olo’s integrated catering solution, which will mark Red Lobster’s first venture into first-party catering ordering in its history.
"We’re incredibly excited to launch first-party catering for the first time in Red Lobster’s history," said Nichole Robillard, Chief Marketing Officer at Red Lobster.
The final phase will include implementing Olo’s full Order suite of products by the end of 2025.
Red Lobster’s decision reflects a broader industry trend where restaurant brands are recognizing the complexity and ongoing investment required to maintain competitive technology platforms. After departing Olo in 2023 to develop their own online ordering infrastructure, the company found that maintaining competitive digital capabilities requires constant innovation across multiple areas.
Noah Glass, Founder & CEO at Olo, stated, "Red Lobster’s return validates what we’ve always believed – that restaurants achieve better outcomes when they focus on what they do best: creating exceptional dining experiences."
The partnership aims to enhance operational efficiency and open new revenue opportunities for Red Lobster while providing improved guest experiences across their locations. With Olo’s next earnings report scheduled for August 6, investors can gain deeper insights into the company’s performance through InvestingPro, which offers exclusive access to 10+ additional ProTips and comprehensive financial analysis.
In other recent news, Olo Inc. reported its Q1 2025 earnings, showing a mixed performance. The company achieved revenue of $80.7 million, exceeding the forecast of $77.54 million, marking a 21% increase year-over-year. However, earnings per share (EPS) fell short at $0.01 compared to the expected $0.06. Despite the EPS miss, Piper Sandler maintained a Neutral rating on Olo, with a price target of $8.00, highlighting the company’s revenue beat and a 290 basis points outperformance on EBIT. A notable development for Olo was its acquisition of Chipotle for multi-module catering use, which Piper Sandler described as a significant endorsement of Olo’s offerings. The full deployment of Card-Present Olo Pay for an existing publicly traded enterprise customer was also a key achievement. Looking forward, Olo projects Q2 2025 revenue between $82.0 and $82.5 million. These developments suggest Olo’s growing influence in the digital ordering space.
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