- A report was released analyzing current trends within the US economy.
- Bank of America is monitoring consumer spending patterns in the U.S. and noting how shifts affect global markets.
Bank of America lowers Olive Garden sales forecast amid consumer spending shifts
What happened
Bank of America lowered its Olive Garden forecast to 1.7% from 2.6%, attributing the change to a softer quarter start, World Cup disruption, and consumers shifting spending toward bars. Meanwhile, Darden Restaurants Inc. saw stronger aggregate sales momentum through August, prompting Bank of America to raise its LongHorn forecast for first-quarter fiscal 2027 same-store sales growth to 6.5% from 4.2%.
Why it matters
The shift in consumer spending is impacting the casual dining sector, with casual-dining spending growth slowing to 1.7% in August. Bank of America noted that while LongHorn's August sales growth accelerated to 13.8%, Olive Garden's improved to 6.7%. The bank also expects the Thanksgiving calendar shift to create a 100-basis-point headwind to casual-dining same-store sales growth.
Bank of America is monitoring consumer spending patterns in the U.S. and noting how shifts affect global markets, following a report that analyzed current trends within the U.S. economy.
Who's involved
- Bank of AmericaAmerican multinational banking and financial services corporation monitoring sales trends
- Olive GardenAmerican casual dining restaurant chain whose sales forecast was lowered
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Olive GardenSpeculative
Olive Garden might see reduced demand and revenue as consumers shift spending away from casual dining
Keep exploring
The entities involved
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Bank of America
American multinational banking and financial services corporation
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Olive Garden
American casual dining restaurant chain specializing in Italian-American cuisine