03:13 PM EDT, 09/20/2024 (MT Newswires) -- Darden Restaurants ( DRI ) announced plans to boost sales with a more "aggressive promotional strategy" for the second half of fiscal 2025, Oppenheimer said in a note emailed Friday.

"[Same-store sales] trends have accelerated into September, setting the stage for solidly positive comps for the rest of fiscal 2025 following [fiscal Q1 2025]'s softer -1.1%. This, along with tight cost controls, caused management to reiterate its full-year financial guidance," Oppenheimer said.

In Q2, Darden will test Uber (UBER) delivery at about 100 Olive Garden ( DRI ) locations, with a nationwide launch expected by May 2025, available only through Olive Garden's ( DRI ) app and website, Oppenheimer said. The management believes this will unlock additional sales potential, while keeping menu prices the same for delivery, dine-in and pick-up, since customers bear the delivery costs.

Darden reported improved sales in August and September, and reaffirmed its 1% to 2% same-store sales growth guidance for the full fiscal year. Oppenheimer kept its earnings per share estimates of $9.48 for 2025 and $10.48 for 2026.

The brokerage maintained an outperform rating on Darden with a price target of $182.

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