DRI - Earnings call transcript Q1 2025 | Darden Restaurants, Inc.

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Operator

Hello, and welcome to the Darden Fiscal Year 2025 First Quarter Earnings Call. [Operator Instructions] The conference is being recorded.

I'll now turn the call over to Ms. Courtney Aquilla. Thank you. begin. may you Courtney,

Courtney Aquilla

Good call. and Kevin. participating you on today's morning, you, thank everyone, for Thank

are Cardenas, me CFO. Joining Rick Raj CEO; Vennam, and Darden's President and

a and Reform Act will morning XXXX. our These results this described which defined Exchange materially As from subject the can of the made to cause expectations are statements is actual risks this in in Litigation was company's differ forward-looking Those with that as call are Securities Private and statements comments reminder, filings uncertainties include to during risks Commission. the release, the press distributed filings in and in projections. the its and Securities

of broadcasting this measurements Today's presentation during darden.com. simultaneously certain posted discussion call, and are presentation in in measurements, included a these website Relations of our and reconciliations include at is We presentation. section the non-GAAP are which the Investor

release Thursday, a the second we XXXX quarter plan ahead, call. on conference opens, to market earnings Looking before fiscal followed XX, December by

today's results Intelligence excluding all benchmark to Dining Casual the Black Darden. Box During to refer references industry call,

update quarter, and first the our fiscal share on X.X%. the to brands Raj provide the brief first X.X% taking And will will acquisition. on sales an the morning, same-restaurant Chuy's guest of details counts our our During decreased and industry results This on remarks response in some discuss Rick decreased some quarter same-restaurant industry are actions and current environment. quarter

Now Rick. will I the call turn to over

Ricardo Cardenas

challenging to strategy X and a have operating we industry, our we our Courtney. Good proven due competitive very operate morning, our navigate dynamic successfully back-to-basics you, everyone. competitive in advantages philosophy. in Thank We rooted can and environments

that short one the strength remains strategy I right our ago the the of in confident we for and business, first fell our the quarter, I nearly developed years for am we XX While of our believe expectations company.

our brands they and deliver to that talked their for a Darden's enables competitive ultimate provide lot platform about We advantages potential. them a how have

to service, life, back-to-basics anchored that atmosphere, and driving is However, integrated attentive operational relevant programs do our our resonate execution in and strong we philosophy and guests. with and bring our smart culinary execution, marketing innovation an engaging that brands by supported through how we operating

my This want teams of the focusing on morning, I areas. to are spend our time in brand work these each doing

simple any to Our But our when innovate it we for teams when continued a to value is ensure bar to be high introducing execute. brand needed. culinary new have drives have to it comes ready item and guests to

brands from here innovating our all revenue some menu, of the are largest examples brands. are While our X

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become top-selling margarita has menu introduced a The Reposado healthier an made LongHorn, also new dragon with LongHorn the during tequila well and team already exclusive a chicken with ratings. quarter, their specially scored LongHorn for satisfaction their has dish. garlic of gap Patron the margarita. guest closed it addition was lemon Steakhouse Their in that chicken new blended biggest fruit extremely

their successful increase and have result. new the a as introduction time, of follows as and a seen This sandwiches that House cheese pizza in and guest significant team preference in the Yard a half-pound such prime The in introduced steak burgers. platform that are cooked has other pizzas new resulted higher-quality they menu half items satisfaction

at Finally, product offers. items value existing multiple a not by you through They menu create for Kitchen, get leveraging time lot and across limited lot. a purchasing Cheddar's Scratch opportunity buys

they with with a X grilled As caramelized offering pork limited bourbon an at chops glazes topped and are time, onions sides X $XX.XX. example, for starting

Our team the to efforts of opportunity drive team see half and year. potential this and actively back value buys search supply for chain culinary more to the examples Cheddar's exceptional will guests, for fiscal of their continue you in

continues price team was thoroughly new build introduced $X.XX. lunch guest at a and loyalty. X calendar prior to the great platform that lunch tested to Cheddar's on this specials earlier starting and items Additionally, features year This win launch

guest that and rings The COVID. Onion most are process During also are post history. onion best guests a reintroduced the them. quarter, and viewed the menu was Cheddar's during the hard worked post the the extremely to succeeded. back and team loving engaged favorite to Facebook announcing The of rings return they was removed in simplify

great service faster, our the see restaurants satisfaction we our focus scores, guest last the experiences, a a can pace which guests over visit reflected job our category guest evaluating better we up. meal was know full restaurants has have of service From years. of perspective, in continue to central of theme but and lost who on a time, gotten kept general manager month. a world full-service haven't do In that our that conferences we We know

sales on and to believe term. The an to occasions. focus over the over We long something drive will continue incremental is meal team we it brand capturing by each quicker by time opportunity the vary opportunities have brand

one engaging exceptional an where occasion our the enjoy at to Providing experiences. creating atmosphere of themselves fundamental and restaurants each guests guest is

to we are each average this we approximately remodel restaurant and promise. ensure remodels year with buildings operations our per spend inviting. brand's facilities for maintenance keep $XXX,XXX and and Each on on delivering teams to team fresh Our partner

physical It who But bring life. atmosphere is the more people than brands just the also our restaurant. to involves

annual vibe. example, recertified tender. year's To advantage, this bar energized quarter. with first on every House their in their strengthen tap, their bartenders and the House winner, They Yard best Colorado. the from about more Andrew bar For the the all on-tap Stafford, cornerstone beers and to Yard House than XXX on center this execution Yard pride of for at is knowledge team held instilled Congratulations is Denver, which their House the during Yard being a competition bar XXX

to different work priorities that The our our our ways these marketing marketing teams life brands. fits across comes marketing on in supports Regardless, filters. everything brand

be discount. First, it second, deep equity; must elevate at brand a third, not and to be easy execute;

Ending Pasta Perhaps Bowl than a know Olive are limited that nothing this Garden. fits strong by Never Never value Bowl, marketing that motivated time. environment, filters Ending our provide like in a at compelling Pasta during offers, We guests better

traffic for our first industry go Garden the saw they of X relatively than exciting planned by Olive during long total offer window, after of XX X weeks, outperformance, new and years during sauce promotion promotion. team this reacted negative introduce longer Garden weeks week Olive this gap having garlic weeks the their of run a moving to it and longer up the had keep quarter When fifth herb during a last a help than To will year. the they

value. Garden never it. even starting behind Beyond price support an checking all more years, changed marketing is it at X hasn't our and compelling point an Impossible The Olive offers guests value additional making in putting filters marketing tremendous

to that We below we and intend competitors have time. over inflation our price said

average the X grocery points to industry communicating basis team value priced XXX more In last than below years, guests. a do they fact, XXX have job when basis need Garden Olive better recognizes The you full this Olive over points look Garden the inflation. service and the at below of to

focused more on price prominently the will advertising compared last points feature building. their equity to when year So was this message primarily year advertising

Dan year. and conditions we react of intensely his prepared are move team fiscal on their the as focused through and this rest business to to market

tested national on. reach Garden have used their opportunity learnings focused Garden, Cheddar's, have remain they connected including where we program, Olive LongHorn, television House of has guests are brands, to a consuming CTV across also from number content. Yard and Olive a it's and we an While they successfully Using TV

effective be our efficient has drive a be allowed our Connected brands. and have equity our to media targeted, all digital learn investments. way us tests sales TV and to marketing across other to proven incremental and Digital more brand with

regarding this will with Olive announced begin I I some wrap details partnership Before exciting up, at Garden. want with that we Uber the pilot a morning share to

you amazing catering Olive an party experience already members. Garden large As offers team delivered know, by their

for home options, order have guests small continue and to delivery their pay However, general been willing they're for the asking to in delivery guests show convenience.

find member or about not taking you possible the our know, time, and disrupting this guest had stop We've but -- had concerns for was state from to way advantages, over delivery talking partners these model. did As us to years. a model experience us address simple to model. the guest compromising It and without operating business concerns team some we without the about need solutions important third-party for competitive that also

serious Direct option pick experience same guests It to to that experience Uber else perspective, discussions in was manner We do teams giving someone and up drivers it in began orders the the protects about apparent today. our the by having April, systems working have addressed a the the as in take-out in-restaurant order. guest It up solution pick began will concerns. on us their May. integrations From our guests more also our curbside the enhances

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dining or of to our restaurant management in so able terms will allowing in will the proprietary tool in-restaurant continue experience, tips operations our earning on don't be us specialists volume And to impact we the negatively remain these place, Second, team orders. to-go member manage experience. capacity

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simple will to our protect we believe last, partnership And this us model. operating allow

a experience today, changes Our curbside no believe significant be operators. teams our and there to to-go we execute great will

initially We restaurant delivery, an at a at Overall, to it limited out so time a is not of take in Garden we quarter. only learn, to sales. Garden Olive third-party locations second will build roll to view the driver. number delivery marketplace, and this long-term us for as it pilot will Olive sales This first-party intend incremental

plan all locations to-go. to curbside Assuming a phased we pilot, offer to rollout that begin currently successful a Olive Garden

to be the end before fiscal complete We of expect year. that the

to these of filters. actions teams Each this up, fit in all address wrap environment. operating their am guest and are taking brand actions the our To marketing confident our needs in philosophy I

benefits. importantly, More short-term compromise not health they our long-term do for

the is engagement do for new continue benchmark to member most and that organizations. members recent for Gallup team all-time higher team XXX,XXX all a our make our reached company the showed and July our thank focus nearly than points Thank commitment survey to extremely proud in successful. XX want high conducted I engagement our you display. you for level I'm they U.S. Gallup by to overall

it I'll Raj. Now over turn to

Rajesh Vennam

Rick, you, morning, and good Thank everyone.

First industry by quarter the were with holiday. impacted results the June quarter as in earnings Fourth the the step trends surprised than of that beginning sales a expectations traffic our we result down fourth lower in and our fiscal same-restaurant were July in line of XXXX with July. were significant sales results softness

August, in sales However, month. the rebounded trends in sales flat resulting same-restaurant for

positive have September segments, same of of further Dining. improved, weeks X restaurant in sales Fine all our quarter-to-date resulting first except for The

our sales the experienced highlighting year, margins we first and delivered durability EBITDA and more model. quarter, we during of the business than industry-leading cash the softness adjusted Despite generation prior the generated

sales we first partially addition generated driven last negative quarter, sales, same-restaurant higher the by of $X.X XX new X.X%. of X% offset restaurants the In by than net billion total year, and of

this again same-restaurant exceeded XXX points sales quarter than the basis were the that industry same-restaurant counts better the guest and industry industry with outperformed XXX that points. We basis by

from the other LongHorn industry outperformance the the driven our the segments. brands quarter, by in of business gap and Our improved prior to

and below share EBITDA adjusted returned of million from $X.XX. repurchasing per shareholders $XXX quarter, shares. $XXX last million were earnings $XXX million continuing Adjusted We generated paying this operations in diluted to million net year dividends slightly at in our $XXX and

total brands. and above basis lower our was points our slightly were for analysis inflationary year. expenses of commodities Now was approximately our as This only Food labor as looking Restaurant last labor at XX compared quarter. partially total at the adjusted XX margin was of offset productivity points inflation were basis higher by X.X%. approximately pricing to improvements unfavorability beverage X%

driven year, by higher Restaurant basis deleverage. were than with sales our expenses Marketing higher, XX expectations. points were points XX basis last expenses consistent

XX this basis year. level EBITDA rational XX.X%, resulted of lower points All last in than of

favorable This expense partially unfavorability our due Adjusted way basis points compared compensation. in lower unfavorable expense, incentive the the were line. compensation XX the to favorability this expense year. quarter on G&A was Due by is to to mark-to-market last mark-to-market offset we largely deferred tax first accrual hedge offset

Interest expense the XX Chris basis financing points the Ruth's increased expenses to to related due acquisition.

Our XX.X%. The is tax quarter for the additional year referenced mark-to-market driven rate along was to adjusted rate the by earlier, effective I tax the favorable with favorability hedge planning actions. last

rate been impact the without of have would XX% Our approximately effective tax mark-to-market.

X.X% operations, we from total, earnings $XXX generated million sales. which was continuing In in adjusted of

points. X.X%, basis underperforming for Last by Now Olive Olive first industry looking Garden X.X% due decreased in Garden negative by of sales same-restaurant same-restaurant to year, benchmark Total at the quarter. our XX quarter. sales the were X.X% segments for sales the

X-year So period. X.X%, XXX by have has grown continues industry basis, Olive the segment quarter. XX.X% Garden that exceeding points strong margin, Garden over by delivering on for sales same-restaurant to the Olive a basis profit

total of in on this they driven last basis industry XXX by to X.X% sales by where continuing discounting environment. sales from LongHorn, build outperformed X.X%, XXX outperforming gain basis increased the share same-restaurant the industry and QX At deep points significant growth These X.X%, of by year even had points. and sales results strong results same-restaurant

in business. margin doing beef LongHorn segment job and within focused of of resulted basis The and maintaining Sales profit strategy momentum above growth XX.X%, favorable on team year. a great costs points XX is their staying last their

lower Dining as to V's This the addition of Same-restaurant Eddie as continues Fine restaurants. by challenged. Dining last increased Total net X a at were than be margin both Fine at X% in profit sales segment Grille driven the whole new category resulted sales and negative year. segment Capital

segment in the segment. slightly driven business sales restaurant X.X% of by same declined The other sales negative the brands for

industry benchmark industry However, points this is promotional year. and the this outperformed segment quarter. profit in continuing Segment XX.X% this share flat last intensified basis the gain to by of was in XX even margin to activity

support year. guidance we to year-to-date initiatives Rick morning, reaffirmed and shared into the performance the fiscal actual of This taking our remainder consideration the

approval Now a pending update Chuy's I on provide to shareholders. from acquisition. track Chuy's the mid-October, We're to would like currently brief on in assuming close

Ruth's will to in the that learned ready financing we support lessons And their expenses. the this fiscal We And closing. expertise the transaction the for neutral earnings is per bring mentioned to have secured year, as excluding team and this integration. July, to and led the to our transaction successfully on Chris integration-related adjusted be integration share we call announcement anticipate

guest taking confident compromise this We're mentioned, their health Finally, long-term brand not our as address to in we short-term actions the Rick will benefits. teams are for needs our environment. in

one challenging the environment our our right We have for remains navigate proven we can and company. strategy believe

Now open questions. up we'll it for

Operator

Bittner is [Operator from Oppenheimer. first Brian coming today Our from question Instructions]

Brian Bittner

I'm be out? plans partnership, this Uber once curious, Garden analysis conducted be the more an this exclusive impactful period to for partnership add just time? rolled guys fully Olive to some there on how could Or And for options relates partners? will of are it an As have or you

Ricardo Cardenas

grow assuming incrementality over learn we'll that we not are the some quite a pretty Brian, the time. just pilot, do We're to from bit we big. expect estimates But Uber from that. do but have

Uber, if And but And fully that focusing our other Olive on to on focusing Garden. this the Garden. like, up it partnerships, The integrated have for we're running. it almost exclusive other restaurants into are a is we technology in system. piloting now, if ability finished. getting and works right to we expand We're is But X-year terms of we'd the with have Olive brands

reasons So that's make that some time and we that. have we've options one work. of to then spent X-year exclusive the this But after

Brian Bittner

and some in promotions the on your and lever. about just I'm driving curious, thinking peers Olive side, gold But curious less you've September? promotions. use follow-up, some advertising. by to forward I'm taking talked my the the just And And seen you're moving success price are you've price creative just improvement opportunity in about to great the striking industry Okay. of that want showcase sales how points on more what's that with you Garden, that in

Ricardo Cardenas

Brian, for but as the performance industry September, we're guidance the the of think, September in the year. in month is for well, I and our increases, seeing our all contemplated of of rest the

and the really years. you by terms done of challenges a little Garden. start are his as In team price kind things one saying bit And in that have Olive and at of Garden. a promotion certainty. of environment, below the guests Olive Garden work Olive -- I'm They over of know. Dan a little that for of Olive Garden, more at we've looking proud the consumers continue I'll we're to the for is, price decline first-time looking inflation, bit But in this seen and

that taken pricing might they So less realize so than everybody. not much we've

we've some we're points going more throughout price the reacted year. to add So and

that discount, mention our with going others throughout showing deep showcase year time some points to be price might ways. did the in different We're you some Yes, benefit offers. limited

Some value but about Others of like limited Bowl. already Ending are them talking being Pasta are more the Never have, great prominent. we time just

those in things deep to motivate a to be the all but that offers execute, have while back restaurant. being may advantages. intact. filters not some guests time strengthen simple and they at And fit filters to competitive said, our our the still we things restaurant in of a help get our limited That year, are continue will discount, half the There'll to of just marketing still are of

Operator

Our next Morgan question Harbour is from Ryan coming . Stanley. from

Brian Harbour

Uber. on also just Maybe Yes.

think Darden? other would how you perhaps at Do come treat in would brands contemplated the rest kind that, pilot you no Or of that of there is So 'XX? 'XX? in

Ricardo Cardenas

the that well. We have focusing we even that pilot want we know for this Olive our Brian, experience seamless make so really for drivers to team Garden. ability sure systems for on in a the year. have our pretty fiscal we're the work, works right and just that We other this members do brands to and guests now,

not have up first-party we this our pricing to ability that's And Uber to put decide then one to on to one other different have brands it. at the But of to be the are ability we And do already to for and do to brands every brands. the going those in it pilot options brands, from of brands, every they other if be have our we want delivery. going that

Brian Harbour

just Okay. Rick, of maybe also speed little service meals? we more the more opportunity, or and that pace is What focus comments can How What you Great. think over kind time? like could lunch talk period comment? that of see shoulder about sort a do you specifically on there? -- that of kind bit change of kind of of a would

Ricardo Cardenas

category isn't their it This gotten going This dine. a has making challenge. restaurant up throughput state other our the can world really we're gotten there's get to a got faster. feel options Brian. few we opportunities guest The to to hasn't on in up do phones rushed. And will that. without just their And show order Yes, is speed the and They've a something hours. and that guest full-service People door faster. believe us challenge. for And experience need on

take to this going while. a And so is

initiatives that And full-service than capture initiatives can. or trying on. can ago. did where these years what earlier time But at Now do they believe occasion little believe these restaurant. they is guest less throughput will has don't a eat XX the a to that to We they do speed they of help some we're

time. we're our so to time to going spend our And improve

but full-service are not look at you in guests in speed service, Darden, full restaurants, unfavorable. just their at scores If

going don't about So talk full-service to too talk a lot a when really restaurant it's being get We about whole inherently comments speed, about and they they fast. dissatisfying. of

change So to want we that.

faster We're doing ago. today. end is for guests I'm it's of make and time, to to XX it today, going than by going is how to day, or be much that and do And than At want some those job we're they it got our job, faster, it the value not over be needs years. our XX who the different years the to faster need we experience saying that than have faster. they guests' did but

Operator

Jon question next Our from from Tower Citi. is today coming

Jon Tower

Great.

I the a do Just advertising got option curious for am to to advertise on And you the for plans And brand? I've if speak hammer then home could specifically, you for more Eats Uber Uber delivery. the follow-up. on plan Eats. to platform

Ricardo Cardenas

drive do scale, on that, help market apps. that to advertising Uber do options consumers, marketing Eats not to reach But and us have to brand. on websites as can and to we from We have we consumers leverage mobile our the and said, our actually we do as for funds Uber marketing plan channels other we to

when our will consumer place the for time have they website, a goes to-go on to mobile a apps or delivery. on But that our order at option

way. So it that see they'll in

a we guest to at get We do this to and also But time, build we over is to, eClub XX-plus million can have market started. going lot of options Olive that a market have it Garden think it. to we

Jon Tower

on Got question. just quick a another then it. that, And and follow-up

that think is stores? in Uber, of this staffing is fiscal do for you investment 'XX? the question terms earlier, then at this you the require time greater this improvements in mentioned contemplated technology on relationship And and/or guidance In the will

Ricardo Cardenas

all that going And We're how at it, have we're out the rolled works. this first-party by Gardens On morning, this is is side, going while end the it the then to to plan fiscal we we and build. of partner -- a everything going is to the had delivery in And contemplated -- Uber that Uber take our it Olive pilot know, again, year. to to see guidance.

idea fiscal year. will this how be expect much an that you we to give it of So in

it lot a doesn't, and little really goes to think we've a we got going Now But if if then, than think, yes, it's it well little we more take a does bit of while. it there. room

guidance. we Everything know is with that. contemplated our stick we'll in So

part I'm And the of question, sorry? your second

Jon Tower

tech the the time... for improvement on on Just

Ricardo Cardenas

Yes, I'm sorry.

in map of On years. talking faster. the X technology investments necessarily we side, we're help get a how on working our make lot little that technology. over it But yes, the do a We're doesn't road we the things need all is time. the now tech about speed of And restaurants one

on then speed, Our need operations if to do to and our to the we improve add behind work focus is technology it, to that.

And better on we a don't it to and of either. a sat, actually it's staffing, got their And it managers get they're bit false We've for that were how we there. guests guests it staffing some times be technology needs to schedule are they have didn't but better. weights can does, when help and understand good solutions believe there lot ready they writing schedule, where if staff little do sat we so when

few productive add it's hours in and may a our it hours should to restaurant, shouldn't hurt margins. add help while our so the So it it going margins, actually

to beneficial be a over our to guests, to going we is beneficial investors. faster and team little being believe So to our our time, beneficial

Operator

is Eric question Gonzalez coming next Markets. Our from today from KeyBanc Capital

Eric Gonzalez

little talked about point You bit price advertising Olive Garden. the in a

used spend the You're well what past. still you in below spending to

curious your competitors? on the more of spend just bit pressure I'm put thoughts So what are increasing maybe a to level on your

Rajesh Vennam

something that that a think saw return to the investment. we we we're willing is about marketing. be thoughtful can there that do we to I when get find And Eric, we want on, how you make

spend. we more on the on being do and can constraint we the think more So just are about it there return is methodical. that It's any we it's get not

long And always just are trying and business on we've not to win in long-term a of trying we game. said the We're focus We're playing the the term. short to health we where spending by it more do that that. are And to we there do objective willing marketing, build can if how ways in we're can accomplish say we that time. over

Eric Gonzalez

that Okay. big Dining. expect then business about what's if just maybe curious Fine I in the downtick I'm to business driving and could when that And recover? ask just you

Rajesh Vennam

Yes, Eric.

lot There think factors it's Fine international dollars in summer we But the been I like was -- it's other summer, standpoint, a including seem some the like where months. were were consumer challenge -- got and of months. a luxury it travel spending the from places a like into especially Dining the on, things there as summer seems just continuing that.

So a do gradual expect build-back. we

when we I a timing have an is to But don't suburban markets. know and that's clear difference of exact urban there going that markets between happen.

the markets, of mid-XXs are in in to urban pre-COVID suburban more the markets while close pre-COVID. at We the operating still levels in -- the XXs terms to in are retention that of

-- so we income, seeing when then look and people pullback. XXX,XXX to way And at up and we're below, the all

that's saw and impact a part of fast. other more Fine Dining were the you they part get the so And losing lot of them reason the guests that's why really did pretty Fine people, Dining those And of aspirational maybe. And decline.

Operator

is from today question Next coming from Jeffrey Bernstein Barclays.

Jeffrey Bernstein

yourselves trends Great. industry. Rick, my sales for first the and question the was just on following up both

seen And what improvement? is other July maybe your know if earlier you had trends one has weakness wanted behind do wondering, broader just the we have But since catalyst July brands see all then. then or was that that the brands Pasta the think Olive Ending and I of launch the so, Garden just the I'm to to the that industry talked Bowl. think therefore, us? assume that of your And confidence about July, follow-up. improvement of the and, and the industry since And I just worst you Never shock I of

Ricardo Cardenas

Yes.

industry at in bit brands, July. the kind our at brands each and and sudden, June and the August in all QX little of least to similar to we look brands, our -- and pretty what then you our industry both of a And similar happened fell trends to to were were off in other, the to June well, August. If and a industry

We We with driven we highest day weather was of don't but it more July. there the Olympics a much, a to the was Olympics talk tornadoes. hurricanes, of we mentioned, year not travel which last few And but opening lot rating be a as us, was there. ceremony July, had lot a international more a the think too COVID some there an decade. July, interesting dramatic in things. in by pretty was travel which in, international There -- was the in about it's in travel, International month Raj increased storms, expected to opening than it out. lot that than over uptick out there had in

And I'm couple of in of sure the last seen the we've lot in a seen was factors volatility. in so politics July. There volatility there has political anybody months. that were not the

had the we of the up people rest Bowl, even guidance back -- all other and getting and for trend, so Never But are that our our think picked better. Garden that in have And brands about. just this pickup I a year, of but August, not to of bit Pasta and things think and worry is about all Ending little brands about talking are Olive because everybody we continuing

So we July And ways us. unexpected. we've we're to and be able right going behind was the feel to that was just month something like -- in react that get got

Jeffrey Bernstein

more just peers have the activity. Understood. been the following And Obviously, aggressive. on up then promotional

LTOs but But you it's think fiscal of or Bowl, mentioned earlier it's to of avoided of The LTOs second like like or seems it willingness in Never your Pasta still -- better profitable. You've the more desire some the then said, I some compete, that. launch you Ending 'XX. an half indication

an But what the about you're a get not of So I'm short-term because in might or entail long-term whether that uptick the for sense -- you know other could back again, trying in mentioned that just to you're I for to half in entail, Garden going the wondering brands, LTO compromise activity Olive year. benefits. the terms of what health it's talking specifically just

Ricardo Cardenas

Yes.

think we priced in spending dollars this said, of year great highlight our And marketing because and it's we've on promotional we've value. building. Last appropriate the environment, we most to were we As messaging think we equity so guests. than over of understand a that in much little we point, people want the lower sure years, price to that want industry more put bit make to front the and that

will at whether by some menu, are Garden, shifting time fan back the simple Olive at want what compelling their to is Garden term, limited marketing from users. infrequent than Olive their core the back. and to environment, and a to guests build they talking for which highlight our great to get improvement a little of guests we to get about equities, but in core on especially give And motivate or an that value are execute visit, long before, more bit they So first favorites, time guests this bringing had are can message to this reasons

believe I costs this that add constant significant away that the want to promotions Olive that's clear return COVID. Garden shift a We deep right upstream to to be began before from isn't do. don't to that thing discount that

got there. offer So talking they any is to about hey, what get in guests know time to have that's something time we're to It's limited very that, execute. limited just simple

or that won't the brands pork price, X scale chop a that They've offers by able And using great a remember and exactly T-bone on be other X Darden very They the on year was won't year other about Cheddar's and what an Cheddar's much behind opportunity a I for for a bit can brands, some it. able I Darden's the to they or items done have the don't buys. talked marketing like I because at it's ago, maybe limited leveraging they get also just mentioned. don't little put be time of can to item had We limited menu But use. years, the use buy time. brands at as

half at limited fiscal on back. We buys to time that back Cheddar's. while a things that were made the of we've have the year are go some going in other this menu Those

those. see we'll So

And say deep these week Fest, what I we've October House is discounts or because also which not. something limited right always done. didn't time, I starts Monday, But a it's they're is are Yard now, think this

not term, We It We've gains. it's we're the low short-term price real And a might not for of we're don't get so but the played our core the great to sacrifice health as to deep and bring short feel long-term price. we've that going a have into to said, that lot at guests guests before. in long-term lot think higher pay going really a right in really thing. for game discount

on a price on had we So a will That Garden had few beginning plan television your the We on Yes, we said, of all at this question. bit. that planned have way quite change this But The on always year. to already doing we have a at fiscal answer price television. points long little Olive it we're to that planned way may year. doing more points year.

Operator

Next question is ISI. coming from David Palmer from Evercore

David Palmer

and your quick the equivalent the that fee order? what will menu. the prices the get delivery a -- have a menu checkout menu included upon wonder same And be I as Will your I consumer, with seeing on test you a as a in this will margin that being same? be which to back done given everyday you follow-up. you're that delivery that Congrats the this fee prices getting wanted, to parameters takeout

Ricardo Cardenas

I delivery guest. David, by to be just paid want fee, be on clear the going Yes, to that's the

it exact see they else, same else price get everywhere they to what themselves. they have price someone is see the bring pick menu while cost So and food will see coming it the the to will also it them up them menu them versus to

So it's convenience. a of really kind

it's said, it's fairly low a a That pretty fee. --

And and of the X% for so which a kind every delivery just entire is then is of got fee, $X we've of it. order, One order. around parts X a

including order, to to then $X, it and So probably on around up a delivered typical Olive be picking food their versus it will have not tip. the themselves, Garden somewhere them

said, as tip, way, will the with by our we members. team that shared be And

Today they a than clear consumers wants convenience on of are menu win-win a the may that the we that way. see delivery, it we were paying of a menu convenience the they lot higher it's restaurant. is for that not believe a price transparent untransparent didn't the price we So way. realize for in pay If They third-party And that. a marketplace, a much everybody. in that believe in want consumer very we for should

incremental how No that's of cost it so Darden. And works.

a means pickup. our difference margin So it's that not to

was that important. believe we And

today, years we in even about sales said think ago, what you and If to-go. Olive Garden billion does in $X about

would And marketplace it big a big, incremental. transfer that than a hugely quite have unless borne charge been of we to bit someone it a by was to so disruptor, without margin Garden, if third-party being Olive other were that

for third-party XX mean Gardens, charge to offset delivery that had in XX to I unless wanted We've a years. to The Olive we quite them much of our incrementality few isn't to restaurants.

So And gets again, very percentage low order. gets an the cost, order delivery on smaller. to as a to the bigger, the we get consumer believe, average size

fee. gets there's because that $X So total percent pay they the that fixed smaller the amount -- in

Rajesh Vennam

on And Because be of the a as because little recorded I clarify, be to -- percentage just the of fee margin might want different revenue. the the right? delivery geography just P&L, might might go

to and -- impact a out is but the And restaurant has for. that it just that's the so have to will nuance accounted be the meaningful way But on of expenses. come it with percentage, really

David Palmer

the telling Garden? that I clear follow-up. which, thinking latest to you're outperforming. contrast just to to of an a accelerated customer on scores you opportunity that a get about the is seeing anything industry, LongHorn, Is in Olive actually Just still latest and relative is basis with an that wanted about Olive which diagnosis is there Garden course, your to satisfaction is

versus you might with in having any that telling insights that it's example, your maybe and category your inform trade-off what do see are thoughts -- steak, but the we for at-home to something strategy? what the there you're to And in

Ricardo Cardenas

Yes, David.

store, well to it have risk of store and go it They to don't the restaurant preparing operations have and in buying a deliver are want people when grocery steak grocery they've stake heightened steak risk what might quality got on and many in think I we're doing expensive the and steak well. start, I as not brands in seeing category, them winning. is so the and they're times -- at the or preparation. the will that with LongHorn, These strong

say also has over and dining investments pay off. the LongHorn fine significant years that steaks. to trading our And into in people that supports quality, I are data made continues from And down

And you not -- so doing great. to LongHorn that's execute. doing is got part every of country well. steak isn't steak player But in It's that the the reason every

You execute got and is that. to LongHorn doing

may we discount pretty say a But Garden first-time-ish losing bit seen discounts. of would other more. deep during very And front, users have less times of some some guests little pretty are some or On promotional doing Olive I activities is brands we the not seen these Olive from because Garden that have to maybe infrequent users there's deep that's others. at a where what is influx

total brands, of It's we when visits their at visits Because at expense of changed. brands they the -- expense changed. look the you share Our consumers, data says of number other that those not are at growing the hasn't ours. of has Garden Olive just when look have

to discounts share have, little other Cheddar's, is not really we discounts. that companies are that is one from that's these are that doing brands, So discounts. losing. These other neither their they're that insight And taking not doing neither our might we're be losing guests companies

bit but more the talking that of Olive are course, a can in by all want with these them some you have motivating Garden great little out but time items, get what we quicker. time, all a come about these you if unlimited are the price saying, doing? you there prices first you the them, little We at more get So yes, to

Operator

from coming Baird. Tarantino from Next David question is

David Tarantino

Eats I I Uber or, about relationships. Rick, question the Uber had Direct a guess,

So on decision delivery the guess, solely on source and of think first-party my from a most not to I orders the marketplace. make is their their offer not Garden I first And and question most party. this marketplace relationship Olive brands

So And their why decision. brands ever that that just your open on you to would be puts deal wondering a marketplace?

Ricardo Cardenas

Garden in big of I fees. want delivery. really sales for -- I mentioned to-go we're most the We and to they where believe without today $X a by offset be Olive the incrementality guests our come Yes. start any has directly, to earlier, doing that billion lot that website would to

start going we're to so And with that.

more tell about also that that our this, they'll we people to can come We know if website.

an Now a see and learn solve it, the in, about do we'll if it we've more party, about coming the them with third acquisition had. we'll down option doesn't marketplace. challenges to that But road and of little the there's bit Chuy's

third-party we've marketplace. are we said, don't about that like -- if so things And as there always

a about great others maybe got think can and reason marketers. a channel. are got we've and marketing spend a you if also folks mean, I these team. delivery marketplace, lot we -- through is it's strong a is the that, We've their maybe And marketing can't. it's technology of money technology sourcing really them We're that of in really a One channel,

some that the brands ways have be do that's because And way can. sourcing sourcing it. to may So other we of these are they

there's for at So another way looking to change, just to like let's way we then in. on for -- marketplace, seeing things ability we and do think the And a if works. is and see us we've this how have be to this option there's our look years we'll if the And been this at David, in, get that.

Operator

Chris is Your coming next from question from Stifel. O'Cull

Christopher O'Cull

Raj, Olive it Garden you drove maybe what XXXX segment think, talk was year-over-year. margin and that looked levels I down obviously about result? Can slightly below,

Rajesh Vennam

Yes.

And negative would X%, made think, I and there's where adjust I sales in same-restaurant the for with it you us starts you about harder step-down costs. really a were of think I sales, to a our have unexpected react say deleverage. it the Chris, in fact, right? When think when really July lot

great and a well, business was costs our forecasting and to models. do managing job July really to surprising however, of the us Our teams

a little none think it models more had have the of type predicted July. of step-down made And challenging. would I our we just in that

give year-over-year, nuances And again, stuff looked at ahead frankly, between of compared points industry segment I else that right? close. to basis delta. profit, timing what's able in margins, mean pre-COVID. no the hundreds then the one you But really a of some I to XX.X% mean, haven't strong there view anybody else. comes at a They're is this on some pre-COVID to be might I have I, quarters full the exactly are

model feel like perspective. business in from we they're that great place So a

Christopher O'Cull

anything but should you're be over year, X% that call earnings sense. No, there know thinking for of the the terms growth, X% we guess, earnings cadence year? balance still And then targeting makes in the is about I I to it, of

Rajesh Vennam

high from think we that mid- of bit it's it, movement in when next probably single at a digits be the quarters. X quarter-to-quarter. There I Chris, to Yes, look may for for us, little

of benefit of the of shifting things and expect we'll provided quarter, bit some of One sales, a second have we that, QX guidance was of we you a that the would because on Thanksgiving flow through. QX into mentioned earlier when out to little

think think huge to that, be not we it's have single-digit the like way from mid- may probably a difference all I points few next that couple about growth -- said, It's There the high over quarter-to-quarter. that quarter-to-quarter. we But with it, in quarters. a of

Operator

from question coming is from Jim next Your Stephens. Salera

James Salera

to it if a have people is app activation, on the ask have from you of for encouraging the wanted like somebody Do waiters you the had of delivery the already plans restaurant? Olive for from or download it's percentage penetration Garden already? I to really guests. downloaded? have you the going Garden kind or sounds the at sense waitresses sense offering to Because the your a kind app for in-restaurant any opportunity And guests what what of for existing Olive the the incrementality come of whether do app is

Ricardo Cardenas

will. bit percentage have it's at our Garden. order market want app. to-go more, app our good ways I platform pretty whether that to that into that XX% Olive little over a guests, we're mobile of to-go through other There's clear orders get And just be things digital, to our are what if already Jim, we percent, to or want there's of the not app. our going online to And a to do there's we

-- app core It's for consumer. a a it's pretty great a

on You can list. get the wait your name

You can order go. to

other of do a things. You lot can

And app, be for but the on when the won't again, it's giving -- won't to we you percent not app the that pilot, The But going it's is to order the ready but be the of percent, huge website. we And the launch the that pilot. first percentage. good able way during week ready be ready first a are you're website. be on guests will it so it a actually, you can start pilot, order without

James Salera

for you missed just the and don't mix LongHorn And for guys -- Okay. and then quarter? traffic, Garden apologize, I check components if I can but the this, Olive I give us

Rajesh Vennam

So just was X%. at our south pricing Garden, of Olive

X.X% were positive mix. a bit they They had the of think quarter. for little I like a

mid-Xs then So traffic, And LongHorn positive growth they're in had X.X%. for negative X%. the of mid-Xs. was The check traffic

really Xs. high think pricing to was Yes. close maybe I in the that, their

Operator

coming Securities. is Jake Bartlett question from from Truist Next

Jake Bartlett

Rick, was of I what stays some What since big a COVID, my you on investors menu. remains? for around? the changes called the What all made? the the think And what add backs question since are has been: attention changes

menu Olive a you couple What's to to simplification back Are bit? message kind off reversing little at making and kind is, question mentioned to you the a items of menu the The the your be going of You old ones with take back? as Garden. is efforts here add here the of commitment items adding simplification? kind of

Ricardo Cardenas

Yes, keeping very we're committed the to menu Jake, simple.

that we just took anything, to more find All add of example, a chicken brands to off menu want they and and really for items. took that bars it healthy something have filled was guest-satisfying. The the something hole at so that add high option. our lemon added, have items really And the them LongHorn, that we garlic while to chicken was didn't a in a

-- chicken, else. I have we topping great another the seasoning, everything different know The doesn't already SKUs don't we add adds -- any have it if just of on already that restaurant. of adding it a lot our the is a whole already kind in have thing It's chicken. really We

execute. So it's really simple to

] Yard pizzas. pizzas House, were the At place [

just for we right? pizza So toppings. also already the some we're took I'll more better example, a pizzas. those and had we give We off we -- quality a and more, better them an just pepperoni had had selling more -- took appealing cook on actually, pizzas. the you dough, pizza, improved people. ways, time quality in we mushroom And replaced So with We mushrooms

like it them. we We So wasn't added changed just items. new

different We with this of take. take different had cheese one. the on had Same on We burgers the got menu. kind cheese We've fixed menu. on burgers the a We menu. the

it doing significantly was really than menu menu didn't by the before. that, at add their lower is and to Yard we So House

clear items menu have did are simplification the we to we do on that for items, right add we know us. the menu. But take we innovate the when that we was to off. thing yes, And So we continue

Jake Bartlett

appreciate that. I Great.

seeing. question mentioned follow-up is some X% that pricing and inflation X.X% to call, you're Another on pricing or Last on for the you 'XX. of

the I at quarter first here think was X.X%.

that the year, that to the rest range? remains the lower way it that is right So end the pricing of for of about at think

operating bit look better. you And look on then bit the the other your produce reiterated There's changed that part question the for is inflation, inflation, inflation. to items of a flat. a be single-digit -- is, when low little is got is for the cost Beef better the little just now at outlook, commodities guidance But I things you.

better pricing? fair you is we say should So at to that expected, look bit be going a inflation environment, for your side it cost on than you're those factors? to environment little more previously is but How the conservative

Rajesh Vennam

range of be to any going we're X% yes, think where don't quarters is quarter it's Yes, any in to going in to that X.X%, than higher But some Jake, probably given I X.X% I think, we likely. be X%. quarter. have X.X%

of perspective. locked is Now watch to we're We're from where kind not come -- to the a in going going everything in. pricing costs

commodity the on right, then we inflation. And better-than-expected side, you're seeing are

we first fact, -- quarter, headwind back half in said But do some have were in inflationary. I slightly we with chicken. the only prepared In remarks, as my

runs at where is given trending, that the Our is, some out risk beginning chicken there implies there year, new calendar and chicken is contract there. of

that. incorporated we so And

-- that to approximately it's going full that, likely be year, with of says the said, guide the Now going south be we're X%. for all we're what but probably yes, likely to

a it maybe been and a started, bit as we're X%. when bit X% looking can now of north of it you So think little might at maybe of have little we south

Operator

from next Bank Our Sara Senatore America. of is today coming question from

Katherine Griffin

for This Sara. is Katherine on Griffin

on seems in that is you question businesses steak slowed your all the accelerating. that's assessment? in think fair -- to context Is spoke about that it the weeks. But because recent that state category. of performance category the a I'm broader I first the Rick, curious The

Rajesh Vennam

you're if slowdown. experiencing. we're LongHorn, talking about not haven't any specifically what seen Katherine, we That's

In fact...

Katherine Griffin

Right.

Okay.

Rajesh Vennam

Yes.

date, . Rick our trending As at think or across brands. at levels of brands quarter above September all actually to pretty our we're I much said, all August

Katherine Griffin

slowed. it I was -- to it broader about category, the but relative the like guess question hasn't Right. other the more sounds

curbside you question the thank just is mix. second clarifying. And the yes, So like for then on

phased a I the think there's that you rollout across said have locations that to-go. curbside

how have stores quantified like much of maybe that change? you to have -- would So how many your And cause what to-go?

Ricardo Cardenas

of all Garden Olive in couple might every to-go. to-go. in Times have has them Olive much of pretty just have restaurants delivery or Actually, York Katherine, not Square Almost just there side. curbside, like use whether City, third-party -- a probably that Garden curbside. in Time not Every here New they have it's There's Square. let's already has curb a

is curbside wanted clear experience we is a be what. what that to So matter this no

guest is up picking a the it if them to-go delivered, want just it and difference somebody only curbside, So for they is like orders today. else

Operator

Saleh is next question BTIG. from from Peter coming Our

Peter Saleh

you menu Eats delivery, forward? on Just there -- the or for allowing Uber limitations including Are on Garden any the partnership. menu Olive a entire couple is going LTOs of the at or for clarifications

Ricardo Cardenas

Bowl can it's available. available menu is alcohol not -- food you everything Never be to hard But on is thing -- for but Pasta the do can't the ordered now, yes, Ending Right to-go. Never But do to-go, delivery. is anything of only items, kind

deliver catering remember, clarify will we though, we groups. do party that, large I big for that

for catering. you experience Some get the of when same wouldn't get delivery, kind of be the may do those but available Olive they you items Garden

in we bringing we if just house up catering, the you into bring would a somebody do it everything and your we go versus of a else. it set party and and lasagna pan trays So be large

today the to-go on Garden's Olive delivery. can that's But anything only or difference. you that order you for menu can much for order So pretty

Peter Saleh

were just about came how was when Eats target to getting? you cohort are Great. versus of conclusion details this consumers help then of Uber this partnership, you're not something lunch here more trying to kind the dinner? forward that process? you around this there maybe on Any on will And thinking Or a moving you think the for you that delivery overall, of

Ricardo Cardenas

is be. saying having by than start of been see convenience. stickier state thought it's a to time occasion. is want different versus it to pull delivery a But I'll thought it sticky. consumers This dinner. are them it. expensive would need that a is something and And the is that consumers brought would for coming back Well, of lunch There And that. We fairly we or on kind lot how convenience it's over a get not this

We those do to know that eat delivery a that the restaurants. so got, some today, come in in our handful the guests do restaurants, again, restaurants we've of don't of

for occasion going go pick it's And forward. not and a occasions is And of so getting lunch But thing. them. getting of this not up. just get up to convenience or we'll a dinner having we believe pick an be some something occasion new able your to new -- It's the it car in

Operator

from Next coming Gregory Guggenheim Securities. is Francfort from question

Gregory Francfort

quarter, how said X.X% remind you I when I'm just off? forward. pricing can going the us think you thinking is, pricing, just And the question in maybe when rolls My curious about you're that

Your differences little curious massive customer. price with points points menu more spreading I'm these actually that maybe regions. aggressively bit a how kind of some balance price in to across out does you the have not advertising national of

Rajesh Vennam

yes, quarter. action middle some pricing was there the Greg, in of the

the there X.X% when so -- was for full some timing is quarter. the So of

take. into actions or any date if anticipate specifically I of sometime additional to a the a calendar year. time So ourselves were any, Even until back. holding at much things we said, those were we were like lot, very about get where the of we want amount pricing I is this times because new don't we taking Garden, one -- in Olive thoughtful in pricing being don't certain boxing -- a we on when how -- until people in we're

that so changed. And hasn't philosophy

because don't So a -- to to not it something becomes again, I we want we do. number have want then give out to

the when a and we kind promotions, is price perspective, a with of geography small -- there's do varying there percentage from have difference. tiering, some -- have of price have a from said, in we Now Even we tier do markets. that

New if For you in paying are example, Never than the for York Ending country, in you're of you're California, the living City. rest if probably or more Bowl Pasta

So there is some differences. And we do have tiers. multiple

into of that. So kind for the lot pricing of to account takes a is -- consideration factors

Ricardo Cardenas

We just do I'll messaging. our we're one our clear Greg, add Yes, thing. in -- very advertising and

not at think you remarks at one -- if say $XX.XX the and people and everywhere. have because lot So and starting reason pork different items you when that times one didn't Cheddar's say about it's of this on at $XX.XX The a them what I $XX.XX. is about It's promotion prepared another there's one starting of in I price not said chop there. is another is

across across all our of of So brands, we our do all tier geographies.

different markets, we in And different price have We restaurants, for brand. same tiers. in the have a some

So we're very pricing. focused very, on

We have and team long the us in that gives price, a data to that the that not us run. best works help take analytics places and take price

are we harder it's than rather for advertise at. means starting pricing, price which us surgical a very everywhere, one in to doing that our So

Operator

Haskett. is question Jeff coming Gordon from Farmer next Our from

Jeffrey Farmer

income that it's historically Can Bowl. who's call, I'll Olive so that you guess, or, be I some I responded guys responding cohort in customer that's currently here. would the Ending Never or say, light appreciate historically shed Garden try Pasta just on I quick late to to

if giving consumer you income with the bigger cohort. picture that's relief that question is there Just lower any

Rajesh Vennam

Ending a from we Pasta Never Bowl, lift spectrums interestingly, actually up get Yes. consumers do the Jeff, all actually $XXX,XXX. when across income way we to

lift income. sensitive points. of income So it's middle It as these a is bigger middle not for just lower necessarily price some seems like versus income the to

so guests that and actually some it historically, has some us infrequent. helps new and shown And -- this with

So the that's get really we benefit. where

back. missing prices earlier, addressed might some, where and other places. to Rick compared then that's Pasta that Bowl be the where, see guests those Ending Never And really pretty low that we about are them more It's gets actually you menu

Jeffrey Farmer

contributed think the in about And party dynamic? over of you market terms just share diminished delivery thinking do to capturing share couple or diminished as a that last of Garden's has small quick Olive that not market opportunity quarters, follow-up, fully individual that

Ricardo Cardenas

like clear, ended. industry, Garden wasn't much lower share, X share. whenever the And last it has just quarter that is just the we're hear I The Olive be losing want different. market only the had traffic I we diminished think Jeff, years, quarter than sounds to it we and

So bit percentile. XXth traffic quarter, a at of little but share, yes, we're we still this lost the

that some others were average a bit. some drive moved little the there well really traffic did So to that

part few a over it to think, what get the share, of are that these could last customers we that But did Olive in not reason? quarter delivery We Now, be it we've of saying is didn't Perhaps. years. some X really that I believe. Garden chance lose have lost that

Jeffrey Farmer

I I should just have awarded have said. that So what yes, market quickly, outperformance, diminished should fair, XXX% share

fair? So

Ricardo Cardenas

No problem.

Operator

Next question Danilo from Gargiulo is Bernstein. coming from

Danilo Gargiulo

affecting labor mentioning specifically in were consumer might sentiment tighter expect brands? ] from in uncertainty seeing 'XX? make both on cost how what You be hearing political of do affected And greater may this you're we're actually have costs that the the July. to Can that [ for comments the labor controls you parties mechanism your you be

Rajesh Vennam

costs actually pretty up holding are Danilo, well. labor

numbers I we hourly which come look off of X.X%, a were inflation a has lot think labor overall years when quarter, ago. X%, high was at of couple I seeing And the really flow, an labor from wages applicants. applicant think current higher we're our around

good And situation. really labor about so feel actually we the

the labor availability at And from labor to is and when expecting of in that year, we on for which still our be different full that pre-COVID. the X% overall not look we're more range,

that And an as so the issue, the fiscal least for at near or we year. of the in rest see don't term

Danilo Gargiulo

of you're can address segment? you seeing the maybe Dining the Fine actions also challenges comments to on you're make some that some the in And Great. taking

Ricardo Cardenas

very after when economy more now, that Yes, are an not we kind to of aspirational the that Dining hard. want consumer you've at not Dining go there Danilo, We something Fine sometimes that is you about -- it's very consumer. in really going got were that think a discerning if dining, into Fine fine got you've lower believe consumers

even a Dining, The has coming. look will And is of to stopping say across in consumer frequent that all but Fine that the I consumer when at us you our especially not brands, come aspirational. coming what that those you to be times know when wanted dining It's go may to of some dining. fine that get you they are to fine that have people during still

wagyu first a great that's we And great wine great said, wagyu X brought Grille. wagyu now. burgers I and think X of years, for a time point. choice That -- wine. Capital price right a we've X some It's in run and a wine of great good and It's back the at and glasses back of

So that might to get come consumers some and of those see. in

still when got But these our change discerning you've they're sometimes your that market to you really brand restaurants come great consumers don't to coming. to and people to want

Operator

is question today next Our coming Bank. Lauren from . Deutsche from Silberman

Lauren Silberman

time. the Appreciate

So the value increased demand across take Pasta Never Bowl, you that rate for a demand value? promo than obviously given higher mix historically Ending are industry. there's seen seeing or the for just on With you've

Ricardo Cardenas

Yes, preference Lauren, seeing but more not Never we for in increase Pasta bit are are preference, the Bowl. dramatically in so preference, we an little a more add-on buy-up, seeing bit the little Ending -- a more

Now that value. there tiered, it's still it's parts are point the Even better we're seeing of is the great value. though price a preference country because a some a of lot

a is it's of so of there coming And our expectations. the people value. But at performing little because bit more yes,

Lauren Silberman

follow-up side. then on Great. And delivery one the just

you're already color rate? thinking the off-premise without on off-premise Garden range can off-prem run about to and how delivery. Olive the So in incrementality long-term the to this much potential delivery Any how mid-XX% additional add

Ricardo Cardenas

believe would delivery in pilot. some will Garden the be not have for for say consumers every I incremental, while incremental are We're delivered a order what learn a lot Olive is but will way. lot I builds. learn Lauren, we're this that order wanted small say going to to not It's years. Yes, be will -- from going it we there

some So be this. we know that incremental out there will sales of

We will the from learn pilot.

and or time build the keep that from to But restaurants highly pilot, will incremental. be there. from We roll XXX will this first learn continue believe that the going will after out over so and we

Lauren Silberman

include restaurants, XXX pilot Does you're is Great. that the saying? what

Ricardo Cardenas

probably in rollout when the then all to having And if through about on XXX the the pilot will everything pilot, it in second the -- going leave we're and that's The and the holidays. restaurants start. about then plan systems we there then quarter, works,

to restaurants Now getting that working. the XXX technology is means

to there, not X build going slowly, but pilot, build and in technology after start but kind until to pretty market, we're the or X stop of to X and in quickly test holidays. So pilot, pilot very expanding XXX maybe then the stop from the -- then stop in the restaurants, the the

Operator

today Andy question Barish is Next coming Jefferies. from from

Andrew Barish

Yes, I up Ending wanted Never Bowl. just to on maybe finish Pasta

then tougher get moving the promotion do as sauce, guess, from And than with continue? year see to of new Just color Does things some comparisons it you the year-ago starts kind expect it the ago. And of do just and to you up, that cycle little life the a October launch? kind bit lap November also on I how a September?

Ricardo Cardenas

So Bowl. Ending Andy, I'll Garden's talk of the Olive Pasta Never about length

our to because Bowl. So to Never add last weeks weeks more than we It more Pasta planned few a Ending to yes, year. was X over plan X time always we added weeks

Now time. so things it it we're of juice doing up is promotion, kind the to some a during XX-week

to with of launch One adding this sauce, we're and will Never introduce media new them Bowl. which is the sauce, year's Pasta last the adding coincide new of Ending

Pasta when towards believe than we right last going Ending that Never having little That Bowl said, better it before before right during probably is that the will Never is still Bowl But end Never the Ending the wear year's off bit Pasta a time Pasta Ending stronger. Bowl -- not Thanksgiving.

probably year forward And I'll anticipate talk on that to Never being be Pasta going last because compares. year run a every little Raj of bit Pasta NEPB. strength the end positive Ending towards So this we last Bowl year's of the still about Ending is don't we Never this running year's having of kind let tail of Bowl of week kind

Rajesh Vennam

Yes.

into our we some Never got get last fact, I you we the probably preference last late into brands. Ending last that Never then across brands well. But all to Pasta get think up we Bowl started went as to started think Pasta into as we fall hold some see helped where year, year year, especially Ending of when outside softness softness in Bowl October -- mid and from Garden, we significantly before, see up Olive on were did see as about the and And the that year, we of other November. October, into to

there -- little year. bit last not actually get there So softness is though, significantly, better, but the compares a some was

Operator

coming question from JPMorgan. from next Our Ivankoe is John

John Ivankoe

markets? than within kind Olive at Garden those what look a as markets over slower you the the not a the mind in distinguishes performing your really quarters, store distinguishes last better from what of of that's Maybe When kind even performance couple of store as better well? markets,

Is some kind yourselves, do it can any you more you you mean the And demographics anything that kind of look us tools to where below driven? I may pull driven? average average? competition? of closer we certain averages lot more a class the is have -- country say, interestingly, areas underperforming income above underperforming can of Is of it and the are here's to do Or stores there for there have stores? of incremental a be hey, or way a to

Ricardo Cardenas

just an there use country. country our a in I'll softer geography, system. big are example -- since let's parts the Garden than were Olive as John. the actually that parts it's other But of Yes, part of of

Disney you happened soft Texas slower in and the theme about I the quarter. summer. a if you Florida, little saw component to you what example, in mentioned, Florida, listen to the summer, think was and it and the So travel a parks if listen for

had Texas, hurricane lot said, a as I the Houston. storms, we got in hit of

have Houston across We all restaurants over of XX Darden. in

That supposed said, when and difference executing management standards? of you way team. And is really across the geography, quality they the are standards commitment performance our the execute our at we're to look the

you're I'll not to give to you way if intent guests one, Olive a refill. refill, accept the Garden know up. whether else refill, has that return, offered been or you our value, focusing everything on your offering We goes your

doesn't. it If not, you're

So know big Olive performance. that the we one Garden drivers is of of

job your great correctly, it's if lot the return correctly, is the in correctly, At LongHorn, do huge. your to cooked not, and intent If lower. it's if cooking is way, it's cooked a a by they steak stakes

team that don't, is and trained well. then is leading partner or ready and So our team they you general to I that really will they If the do standards, don't. go to if management managing manager they the the tell

our in got restaurants of operations managers. those to we've help directors that so And those

in believe offer same that menu the and We industry of general the our all best we the same across And the all It's we teams of across makes difference. we management hire managers our business. team the restaurants. have But management best the people restaurants. the in that

to really confident we we're we that continue win. So execute,

Operator

Your North Research. is Coast next coming Jim from from question . Sanderson

James Sanderson

wanted I back go pricing. to on discussion to the

I your the think pasta down create-your-own X% taken about over had price by that you point promotion summer.

that Just little what could wondering out promotions bit summer. similar to if forward a saw tell you whether us about how worked more expect more discounted the you going the we quarter and in over to feature

Ricardo Cardenas

you about pasta, had the bit think a what, little last kind know we we over should have at you late And Jim, it if I it to, $XX.XX. in year fiscal we maybe $XX. priced thought, kept create-your-own of think, up

on it's at $XX.XX So actually menu today. our

Maybe so. don't was. So it it probably -- I was wasn't $X.XX, reduction. it X% $X.XX, a went it But maybe down think so

But our we took pricing across. still

value which than $XX.XX. at we offer day, at a that probably And is Pasta sense more makes decided Ending every Never so $XX.XX Bowl, it great

that So price other places. we were move able to to

at to offer the we'll not So future it's when -- it's come create own is to But point. refresh think your to $XX.XX, with to and limited around continue reasons get for we which what day. every stay provide you in that about doing we're that it, guests and going pasta believe continue price time,

so on also can on anything any some rest did pricing, the rest value talk offers have the to continue of the to things the on great other of in, we menu value we'll about of the see and But menu. on there's get some miss If Raj, I they great time the price? the maybe people limited

Rajesh Vennam

I think you got it. Yes.

James Sanderson

Just $XX.XX, back When to price any you or you bad? did notice normalize did consumer point a good that reaction quick follow-up.

Ricardo Cardenas

than did. doing was went our And we performed little up bit. better . Yes, was a bit a I it in Preference than Yes. XX%-plus. think, was, Garden. Olive at It at June better little May, in performance it

James Sanderson

question. quick Can for Last estimate the for of you give expenses year an exceptional year, given the comparison budget you us Understood. G&A had for dollar last some purposes?

Rajesh Vennam

Yes.

We're we guidance, I changed hasn't think this said probably initial I think in since $XXX looking it -- at we close million. to somewhere the then.

the With first XXX in to quarter be in to you quarter. XXX, that being can any the more XXX rest expect given

Operator

Brian Vaccaro from Raymond from coming is James. question Next

Brian Vaccaro

larger can X is existing off-premise us catering remind for order or type your me. Garden, orders? you what versus small ones On percent at business Just that Olive of quick takeout group

Ricardo Cardenas

about catering Yes. XX% It's kind set. order about XX% small and of

Brian Vaccaro

proteins at Great. end to point? that Or price on customers of Pasta that on say adding starting mix the Never what just Okay. on did Bowl, was I'm And that up Ending curious, trading was staying versus NEP you adding that percentage up just clarify comments on overall your up? proteins up? trade-up Rick, your was and sales

Ricardo Cardenas

up would Yes. Ending In slightly up lot. trade-up for some the Never it's the things. the up But preference preference up. Pasta a up markets country, overall it's Bowl. more our But X say is slightly. I overall is than One, of is

people XX% And the the to of XX% which on pasta, is trade-up -- order protein top is the last the year. about XX% of up versus

Operator

back the of any over comments. to our turn We've like further session. floor reached end the for question-and-answer Courtney I'd or to closing

Courtney Aquilla

call. results to the That before market in today's concludes the follow. remind you on quarter with December call plan our we release you XX, conference Thank opens want second to to for Thursday, I that participating the call.

Operator

That you. and webcast. conclude does today's Thank teleconference

may disconnect your thank line a and have today. You participation your this day. wonderful for We at time, you

Darden Restaurants (DRI) 19 Sep 242025 Q1 Earnings call transcript