In a bid to improve operations at the casual Italian chain Olive Garden, Darden Restaurants, Inc. (DRI) will revamp its restaurant design nationwide and update its online-ordering platform, "To Go." In addition, Darden will launch a new Olive Garden logo as part of the transformation, marking the first logo change in more than 15 years.
Darden is looking to do a major overhaul of its Olive Garden chain. The chain has introduced more than 20 menu items of different value. Lower-priced items and smaller-value meals are appealing to younger and budget-conscious customers.
The restaurant remodel, to be rolled out at more than 75 locations in the next year, includes removal of walls, creation of a more open atmosphere, seating changes to accommodate more guests during peak hours as well as larger groups, vibrant décor and all-white plates.
Furthermore, Olive Garden is testing a new menu design and format in more than 30 restaurants which will be rolled out nationwide later this year. In addition, all remodeled restaurants will offer new leather-bound menu with an updated look and streamlined, easy-to-follow format featuring Olive Garden's new brand merchandising and logo.
Additionally, Darden is revamping its website, including a national launch of its online To Go service that allows customers to order meals online and pick them up at the restaurant. It also offers customers the option to redeem coupons while paying online or when picking up the order. The customers also have the option to save their favorite orders to make future transactions easier and order meals well in advance.
Darden’s decision to completely remodel Olive Garden is a positive, in our view. Despite reporting weak numbers in the recently-concluded quarter, Olive Garden still contributes a major part of Darden’s revenues. The use of technology to order food is expected to be a particularly efficient step to boost sales and lower waiting time at its restaurants, which, in turn, will boost the top line.
Darden currently carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks in the same industry include Chipotle Mexican Grill, Inc. (CMG), Red Robin Gourmet Burgers Inc. (RRGB) and Sonic Corp. (SONC). All these stocks sport a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment