Olive Garden Stock Jumps 7% After Caving to Uber Delivery Deal

I hope you’re ready, because the endless breadsticks just got even more dangerous. Darden Restaurants (the parent company of Olive Garden) has finally caved to what we've all been screaming for — delivery. 

That’s right, after years of keeping their famous breadsticks in-house, the pasta and Sinatra loving chain is now teaming up with Uber to bring the goods straight to your door. And the stock is eating it up, shooting up 7% on the news.

Let's break it down. Darden, the company that also owns LongHorn Steakhouse and a handful of other delicious spots, announced Thursday they’re officially getting into the delivery game. This new deal with Uber Technologies is set to roll out in late 2024 as a pilot program, and if all goes well, they'll be delivering from more than 900 Olive Garden locations across the U.S. by May 2025.

For years, Olive Garden flat-out refused to do delivery. It was like they were the last holdout in a world where even your grandma is getting DoorDash. But customers have been begging for it, and now they’ve finally broken down. Rick Cardenas, the CEO of Darden, said it best: “Guests have been asking us for home delivery options, and they continue to show they are willing to pay for the convenience.”

When Darden started looking for a delivery partner, Uber was the clear choice—and it wasn’t just about logistics. According to Rick Cardenas, Darden’s CEO, the partnership needed to align with Olive Garden’s long-standing commitment to quality and simplicity. That’s why Uber is creating a custom integration tailored to Olive Garden’s needs, allowing the restaurant to focus on what it does best—serving up those carb-loaded dishes without complicating the process.

Darden’s stock didn’t waste any time reacting to the news. It jumped 7% after the announcement, which is probably the most excitement Olive Garden’s seen since they brought back their never-ending pasta bowl. This delivery deal got all of the attention today, even though Darden’s first-quarter earnings were a little undercooked. They reported an EPS of $1.75 (just below estimates of $1.83), but apparently, investors were too distracted by the thought of spaghetti delivered via Uber to care.

Once this pilot program wraps up and Uber starts delivering Olive Garden nationwide, it’s game over for all of us. Darden expects the full rollout to be done by May 2025, which means you have roughly a year and a half to prepare for unlimited breadsticks on demand.

This isn’t just a big win for Olive Garden fans. Uber’s stock also saw a nice little 3% bump after the announcement, likely because investors are drooling over the thought of all the delivery fees they’ll rake in once this partnership goes live. And with Uber’s massive delivery infrastructure, Olive Garden’s meals are set to reach even the most remote corners of the U.S. (even my cousin out in the middle of Ohio can get his breadstick fix).

Despite the Uber partnership, Darden Restaurants is only up 5% year to date.

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Stock.News has positions in Uber.