Olive Garden customers can expect menu prices to increase in the near future after the popular Italian restaurant chain has kept price hikes well below inflation in recent years, parent company Darden Restaurants said this week. Darden CFO Raj Vennam told analysts on the company's earnings call Thursday that Olive Garden menu prices for this year are "to be more in line with inflation" in the 2.5% to 3% range, spread over the next four quarters.
Olive Garden's same-store sales have fallen for two consecutive quarters, dropping 1.5% last quarter and 1.8% in the one prior. However, Darden's earnings beat Wall Street expectations thanks in part to stronger sales at its LongHorn Steakhouse restaurants.
He said Olive Garden has "taken much lower pricing" than other Darden brands over the past year and the restaurant industry at large over the years. GET FOX BUSINESS ON THE GO BY CLICKING HERE "Operators that deliver their brand promise and value will continue to appeal to consumers despite economic challenges, and that's what we're focused on doing," Cardenas said.
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