By Heather Haddon

Olive Garden owner Darden Restaurants continues drawing diners, but it is taking $6 fettuccine alfredo pasta promotions to do it.

For the first time since the pandemic, Olive Garden has brought back a deal offering discounted takeaway pastas when a diner buys an entrée. It also recently offered a popular manicotti dish for $12.99, and is advertising deals more heavily.

"Consumers are becoming even more discerning," Darden CEO Rick Cardenas said during an investor call. Falling consumer confidence hasn't killed diners' desire to eat out, but they need more motivation to "get off the couch," he said.

Darden's sales increased 6.2% to $3.2 billion last quarter, driven by new locations and a 0.7% same-store sales increase. Olive Garden and LongHorn Steakhouse saw same-store sales increase 0.6% and 2.6%, respectively, while the metric fell at Darden's fine-dining locations.

Wall Street analysts had expected Darden's sales to rise more, but were cheered the company broadly maintained its financial projections. Darden's shares jumped 7% to $201.68 in Thursday morning trading.

Darden also said Thursday:

-- It is negotiating with vendors in case tariffs drive up its costs. The company said 80% of its supplies come from domestic sources, and it is looking at ways to handle tariff impacts on the rest.

-- Consumers making less than $50,000 are eating out a bit less. Darden said consumers visiting its fine-dining restaurants are pulling back on big tabs, after spending more freely during the holidays.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

March 20, 2025 10:49 ET (14:49 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.