Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



At Olive Garden, Things Have Gone From Bad to Worse

Customers are abandoning Olive Garden in droves. On Monday, the company admitted that same-store sales fell by 5.4% in the three months ended Feb. 23. It was the restaurant's worst quarterly performance in over two decades.

Olive Garden's parent company, Darden Restaurants (NYSE: DRI  ) , is blaming the weather. "During our fiscal third quarter, underlying conditions in our industry continue to be challenging," said Darden CEO Clarence Otis. "And on top of that, both the industry and our brands were hit with unusually severe winter weather in much of the country."

But is this the real reason for Olive Garden's deterioration? In the following video, Motley Fool contributor John Maxfield explains that there's more to the story than severe winter storms. According to his analysis, the Italian-themed chain's problems started three years ago, when diners began favoring fast casual chains such as Chipotle over casual dining concepts such as Olive Garden.

Do you want to get rich?
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2866366, ~/Articles/ArticleHandler.aspx, 9/2/2015 2:59:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

John Maxfield

John is The Motley Fool's senior banking specialist. If you're interested in banking and/or finance, you should follow him on Twitter.

Today's Market

updated Moments ago Sponsored by:
DOW 16,239.74 181.39 1.13%
S&P 500 1,930.80 16.95 0.89%
NASD 4,700.37 64.26 1.39%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 2:43 PM
DRI $68.45 Up +1.38 +2.06%
Darden Restaurants… CAPS Rating: ***