Olive Garden raising menu prices again

Core Insights - Olive Garden is expected to increase menu prices in the near future, aligning them more closely with inflation rates of 2.5% to 3% over the next four quarters [1] - Over the past five years, Olive Garden has maintained pricing approximately 20% below the overall consumer price index (CPI), which has risen by nearly 23% during that period [2] - Same-store sales for Olive Garden have declined for two consecutive quarters, with a drop of 1.5% last quarter and 1.8% in the previous quarter [3] Pricing Strategy - Darden's CFO indicated that Olive Garden's pricing has been "very modest," with only a 1% increase in menu prices last quarter [2] - The company has taken a lower pricing approach compared to other Darden brands and the broader restaurant industry [5] Consumer Sentiment - Darden's CEO noted that consumers are increasingly concerned about inflation and the job market, which has affected sales to customers below the median income [4] - The focus remains on delivering brand promise and value to consumers, especially during economic challenges [6]