Darden’s fine-dining business weakens, but overall sales grow
Same-restaurant sales at Darden Restaurants’ fine-dining eateries fell in the quarter ending May 28 despite overall business improving at the Orlando-based chain.
Darden owns Olive Garden as well as other chains, including fine-dining restaurants Eddie V’s and The Capital Grille.
The company reported overall sales in the quarter were up 6.4% to $2.8 billion. Same-restaurant sales grew 4%, but that figure for just the fine-dining restaurants fell 1.9%.
CEO Rick Cardenas addressed concerns about the economy and consumers on an earnings call Thursday, saying Darden has not seen an effect in its customers “as much as maybe our competitors have.”
“There is a tension between what people want and what they can afford,” Cardenas said. “Even in a slowing economy, consumers really continue to seek value, and it’s not always about low prices. It’s about execution. … They’re making spending tradeoffs and, as I said before, food away from home is really difficult to give up, if you’re executing.”