Darden Restaurants saw its same-store sales slip at its fine dining locations amid consumers’ concerns about inflation and the job market.
Rick Cardenas, president and CEO at Darden Restaurants, said Thursday (June 20) that those concerns are greatest among consumers with incomes below the median household income of $75,000 and especially among those with incomes below $50,000.
Darden’s transactions with these consumers were lower in the fourth quarter than they were a year earlier, Cardenas said during the company’s quarterly earnings call held Thursday.
“These impacts were even greater in our fine dining brands, so that’s why you saw fine dining had a more negative comp than others,” Cardenas said.
During the fourth-quarter and fiscal year ended May 26, same-store sales at the company’s fine dining restaurants were down 2.6%, those at Olive Garden were down 1.5% and those at its other businesses were down 1.1%. LongHorn Steakhouse was the company’s only brand that saw a gain, with a 4.0% increase, Darden Restaurants said in a Thursday (June 20) earnings release.
The same-store sales figures for the company’s fine dining segment include The Capital Grille. They do not yet include the Ruth’s Chris Steak House restaurants that Darden acquired in June 2023, according to a presentation released Thursday.
The company-owned Ruth’s Chris stores will be added to those figures after Darden has owned them for 16 months, according to the presentation.
While the company’s same-store sales were flat overall, they outpaced the industry by 80 basis points, Darden Chief Financial Officer Raj Vennam said during the earnings call.
“Olive Garden guest count growth was near the top quartile of the industry and LongHorn Steakhouse was at the top decile of the industry,” CFO said. “This is impressive when you consider the increased levels of discounting and promotional activity by some competitors within casual dining.”
Looking ahead, across all its brands, Darden expects to see same-store sales growth of 1.0% to 2.0% in fiscal 2025, according to the release.
This guidance takes into account the weaking gross domestic product (GDP) growth expected by most economists, Vennam said during the earnings call.
“We started to see a little bit more weakness in the back half of the fiscal year, so we’re taking that into consideration as we look at next year,” Vennam said.
Cardenas said during the call that consumers have been focused on the high prices they’ve seen everywhere — not just in restaurants — and that those costs have impacted their discretionary spending.
“So, if inflation in the non-discretionary gets better, that may give them a little bit more discretionary,” Cardenas said.
We get a lot of press releases here at PYMNTS. We consider all of them, and some are more newsworthy than others. But this one really got our attention. This past week, Diebold Nixdorf made headlines with its announcement of successfully installing two new automated teller machines (ATMs) at the U.S. National Science Foundation’s McMurdo Station in Antarctica. This achievement marks a significant milestone in banking accessibility, to be sure. We would like to meet the crew that installed them. We’d also like to know why they needed two. Was there a line at the first one? More to come on that.
According to Diebold, McMurdo Station is Antarctica’s largest research and logistics hub, supporting a fluctuating population that ranges from fewer than 200 residents during the winter months to up to 1,100 individuals during the summer (October through February). The presence of these ATMs is crucial, it says, as the next closest banking facilities are thousands of miles away, making them the only ATMs on the entire continent. How’s that for a value proposition?
The DN Series ATMs are designed for always-on availability. And why do they need two? One ATM is actively in use, while the second serves as a backup for spare parts, ensuring uninterrupted service in this isolated area. These machines are connected to the DN AllConnect Data Engine, which leverages Internet of Things (IoT) connectivity, machine learning, and artificial intelligence (AI) to monitor their performance. A dedicated team continuously aggregates and analyzes technical data to identify potential issues, enabling remote diagnostics and repairs. The ATM can be maintained by trained staff at NSF McMurdo Station, or the Diebold Nixdorf service team can remotely guide them through the repair process.
Anyway, it got us thinking. Are there other surprising ATMs in extreme locations? Well, of course, there are. Here’s a sampling of what we found.
At an altitude of about 5,364 meters (17,600 feet), the Mount Everest Base Camp in Nepal is another unexpected place to find an ATM. Although it’s not a permanent fixture and is often set up seasonally, it caters to climbers and trekkers who need cash for local transactions. This temporary ATM service underscores the adaptability of banking services in extreme environments.
In some parts of the Amazon rainforest, particularly in Brazil and Peru, ATMs can be found in small villages and towns. These machines are vital for local communities, providing access to cash in areas where digital payment options might be limited. The presence of ATMs here demonstrates how banking services can reach even the most remote communities.
Located in the Tibet Autonomous Region, Nagqu is home to one of the highest ATMs in the world. This region is very remote, with limited infrastructure, making the presence of an ATM a notable example of banking accessibility in extreme environments.
In the Thousand Islands (Kepulauan Seribu) off the coast of Jakarta, Indonesia, there’s a floating ATM. This unique ATM serves the local community and tourists on the islands, demonstrating how banking services can adapt to isolated marine environments.
Longyearbyen, the administrative center of the Svalbard archipelago in Norway, boasts the most northerly ATM. This location is one of the most remote inhabited places on Earth, with limited access to mainland Norway, making the ATM a vital service for residents and visitors.
On a more serious note, the installation of ATMs in places like Antarctica and other remote locations highlights the evolving nature of banking technology. With advancements in IoT, AI and remote diagnostics, it’s becoming increasingly feasible to provide banking services in areas previously considered inaccessible. As we look to the future, it will be interesting to see where else ATMs might appear. Whether it’s on a remote island, at the top of a mountain or even in space, the ability to access cash is becoming more universal than ever. And who knows? Maybe one day, we’ll see an ATM on Mars, serving the first interplanetary travelers.
For now, the presence of ATMs in unexpected places reminds us that banking is not just about transactions; it’s about connecting people and communities across the globe, no matter how remote they might be.
