Stocks Olive Garden, LongHorn Steakhouse Owner Darden Warns Lower Income Customers Are Pulling Back
Olive Garden, LongHorn Steakhouse Owner Darden Warns Lower Income Customers Are Pulling Back Darden Restaurants, a top full-service US restaurant group with 1,914 locations across 50 states under its eight brands—Olive Garden, LongHorn Steakhouse, Cheddar''s, Yard House, Ruth''s Chris, The Capital Grille, Seasons 52, Bahama Breeze, and Eddie V''s—warned on Thursday that lower-income customers are pulling back on spending. "Transactions from incomes below $75,000 were much lower than last year, and at every brand, transactions fell from incomes below $50,000. Similar to Q2, this shift was most pronounced in our Fine Dining segment," Chief Executive Officer Rick Cardenas told investors on an earnings call. However, Cardenas pointed out, "But specifically, your question for the third quarter, transactions from households with incomes above $150,000 were higher than last year." Consumer behavior shifts are materializing for the restaurant group and serve as a health check proxy for consumers.
https://www.zerohedge.com/markets/olive-garden-longhorn-steakhouse-owner-darden-warns-lower-income-customers-are-pulling-back
