Darden Restaurants retook a buy point in early trade Thursday, after announcing fiscal first quarter earnings, and an on-demand delivery deal with Uber Technologies. Uber shares popped almost 2% in morning action.
For its fiscal first quarter, ended in August, the owner of the Olive Garden chain reported earnings per share of $1.75, down slightly year over year and below consensus views for $1.83. Revenue just met views with a 2% gain, to $2.8 billion.
Management backed its prior full-year EPS guidance of $9.40 to $9.60. Consensus views see $9.50.
The Orlando, Fla.-based operation also announced a multiyear, on-demand delivery partnership with ride-share innovator Uber. The arrangement will allow deliveries from Olive Garden menus, through the Uber Direct delivery arm, set to begin at select locations in late 2024. It the pilot is successful, plans call for a rollout to 900 locations nationwide in 2025.
Darden Restaurants And Uber Stock
Darden stock rallied more than 7% early Thursday, probably boosted at least partly by Wednesday's Federal Reserve rate cut news. Early in the week, shares of Darden Restaurants dodged briefly over and under a cup-with-handle buy point at 160.64.
The stock closed narrowly below that entry on Wednesday. Thursday's early gain marked a decisive move above the buy point and to its highest level since March.
It also puts Darden Restaurants stock into positive territory for the year so far.
Uber shares are basing, rebounding from support at their converged 10- and 40-week moving averages. Thursday's early advance lifted shares narrowly above a handle entry at 74.48.
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