Sept 19 (Reuters) - Olive Garden-owner Darden

Restaurants said on Thursday it has entered into a

delivery deal with Uber Technologies ( UBER ), sending its

shares up about 7% in premarket trading.

The partnership is set to kick off as a pilot program at

some Olive Garden ( DRI ) locations in the United States in late 2024

and expand to all 900 outlets across the country by May 2025

after a successful trial, Darden said, without giving other

details.

"Guests have been asking us for home delivery options and

they continue to show they are willing to pay for the

convenience," CEO Rick Cardenas said, adding the deal would help

address customer needs without compromising on competitive

advantages.

Darden missed its first-quarter sales and profit estimates

on Thursday, hurt by sequential decline in customer traffic amid

sticky inflation.

The restaurant operator, which also owns LongHorn

Steakhouse, posted a 1.1% drop in same-store sales in the

quarter ended Aug. 25, compared with a 5% rise a year ago, as

customers cut back on dining out.

The restaurant industry has been struggling with dwindling

demand as inflation-weary consumers became cautious of their

expenses and have been increasingly eating at home.

"The significant step down in traffic during July, led to

our first quarter earnings being lower than expected," said CFO

Raj Vennam, as the company reiterated its annual forecasts.

Same-store sales at its Olive Garden ( DRI ) business fell 2.9%,

while they fell 6% in its fine dining restaurants.

Darden reported an adjusted profit of $1.75 per share for

first quarter, below analysts' average estimate of $1.83 per

share, according to LSEG data.

The company posted quarterly net sales of $2.76 billion,

compared with estimates of $2.80 billion.