DRI - Here's How Gift Cards Will Help Restaurant Chains Dominate This Holiday Season
'Tis the season to go shopping, and with that, retailers can expect a little lift. But actual gifts aren't the only things being wrapped up, tied with ribbon, and stuffed in a stocking these days -- gift cards remain a popular choice, topping consumers' wish lists for the 13th consecutive year, according to the National Retail Federation. And a report from Paytronix showed that holiday gift card sales jumped 15% last year from the one before, with the big gains beginning on Black Friday.
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That means good news for restaurant companies like The Cheesecake Factory (NASDAQ: CAKE) (which operates the restaurant by the same name), Bloomin' Brands (NASDAQ: BLMN), and Darden Restaurants (NYSE: DRI). Bloomin' Brands owns Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar, while Darden owns LongHorn Steakhouse and Olive Garden. The restaurants all offer gift cards. Dining was the most popular of any category of gift card among consumers during the 2018 holiday season, according to Blackhawk Network, which provides gift cards and related services to companies. Blackhawk predicted the same trend for this year.