:max_bytes(150000):strip_icc()/GettyImages-2251668443-4b95fc87999a4baeb5920bda5b27d548.jpg "Americans Are Hungry for Deals. Olive Garden’s ‘Never Ending Pasta Bowl’ Is Winning Them Over")
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Key Takeaways
- Olive Garden’s “never ending pasta bowl” special was a meaningful driver of its quarterly sales as Americans search for deals, executives said Thursday.
- Executives also said Olive Garden has seen a growing number of higher-income customers at its restaurants.
Olive Garden said its sales show Americans are growing more hungry for two things: value, and lots of pasta.
Executives from Darden Restaurants (DRI), the parent company of Olive Garden, said during the company’s earnings call Thursday that the restaurant chain saw a big boost in its quarterly sales, thanks in part to the popularity of its $13.99 “never ending pasta bowl” special.
“Preference was strong and refill rates reached a record high demonstrating that guests continue to find abundance, and meaningful value at Olive Garden in this environment,” CEO Rick Cardenas said, according to a transcript from AlphaSense.
The CEO also said Olive Garden and Darden’s LongHorn Steakhouse have seen a growing number of middle to higher-income customers, echoing other restaurant chains and retailers saying they’re seeing consumers at higher income levels search for better deals.
Why This Is Significant
Olive Garden parent Darden is the latest in a growing trend of companies reporting American consumers are showing some signs of strain and searching for value.
Darden posted $3.1 billion in sales for its fiscal second quarter, slightly above the analyst consensus compiled by Visible Alpha. Adjusted earnings per share came in at $2.08, just 1 cent below estimates. Cardenas said that record-high beef prices were among the factors pressuring its margins. Same restaurant sales gained 4.3% across Darden’s portfolio, led by 4.7% and 5.9% gains for Olive Garden and LongHorn Steakhouse, respectively, each topping forecasts.
Looking ahead, Cardenas said that the restaurant operator plans to continue focusing on value, including introducing a lower price, smaller portion option at Olive Garden.
Darden raised its full-year revenue outlook for the third straight quarter, though it warned higher prices could hold back profits. Darden said it now expects sales growth of 8.5% to 9.3%, compared to its prior guidance of 7.5% to 8.5%. It held its adjusted EPS forecast steady at $10.50 to $10.70.
Shares of Darden were up less than 1% in recent trading. They’ve climbed about 2% for 2025, after pulling back from record levels reached over the summer.
