John Tower's questions to DARDEN RESTAURANTS (DRI) leadership • Q1 2026
Question
John Tower asked about the cost impact of Olive Garden's affordability pivot and UberDirect delivery amplification on restaurant margins during the quarter, and expectations for these costs going forward. He also sought more details on Olive Garden's delivery business, including guest frequency and seasonal usage.
Answer
CFO Raj Vennam stated that the affordability initiatives and delivery fees were planned and contributed approximately 20 basis points each to the margin percentage impact, despite Olive Garden's strong segment profit margin. CEO Rick Cardenas confirmed that delivery guests show higher frequency than in-dining guests, and while seasonality is still being observed, summer delivery orders did not fall off as typically expected.