SoundHound Stock Gets Boost From Red Lobster Partnership

SoundHound AI, Inc. SOUN has partnered with Red Lobster, the world’s largest and most iconic seafood restaurant chain, to launch an AI-powered phone ordering system across all locations. The initiative aims to streamline and simplify takeout ordering, enhance the overall guest experience and provide meaningful support to in-restaurant teams.

By integrating this technology, Red Lobster can ensure every call is answered — even during peak hours — while the system simultaneously manages multiple orders and provide quick responses to common questions. Orders are routed directly to the restaurant's point-of-sale system, reducing employee workload. This allows personnel to concentrate on welcoming customers and providing good service.

Shares of this global leader in conversational intelligence have gained 4.3% during trading hours yesterday.

Strategic Implications for SoundHound Stock

This deal with Red Lobster highlights the growing demand for AI-driven ordering solutions in the restaurant industry. For SoundHound, the partnership not only adds a marquee client but also strengthens its case for broader restaurant adoption across national chains. With more than 14,000 restaurant locations already deploying SoundHound’s solutions, the Red Lobster contract reinforces the scalability of its platform. As consumers increasingly value speed and convenience, SoundHound’s positioning at the intersection of AI and dining could translate into durable revenue growth.

SoundHound’s Enterprise AI Momentum

SoundHound’s collaboration with Red Lobster represents more than a technological upgrade — it signals the company’s expanding influence in enterprise AI adoption. By improving customer engagement while reducing operational strain, SoundHound is demonstrating the real-world value of its platform. The company is steadily expanding its presence across industries — from financial services and healthcare to retail and now the restaurant sector. With decades of innovation, customer engagement and enterprise integration expertise, SoundHound is well-positioned to reinforce its role as a leader in conversational AI.

Share Price Performance of SoundHound

SOUN’s stock has skyrocketed 269.1% in the past year, outperforming the Zacks Computers - IT Services industry’s 11.8% decline. The company’s growth has been fueled by successful acquisitions, strong customer partnerships and rapid expansion into the restaurant sector, highlighted by its collaboration with Red Lobster. Additional drivers include record implementation speeds, increasing adoption of the Amelia 7 platform, and the continued growth of its restaurant vertical, now serving more than 14,000 active locations.

Momentum is also reflected in the company’s operating performance. SoundHound enters this new phase with a solid financial footing — more than $270 million in cash and no debt. Following the recent Interactions acquisition, the company achieved its best-ever quarter, processing around 3 billion AI queries and tripling revenues year over year. It is anticipated that the acquisitions and partnerships will boost profitability and strengthen its position as a leader in AI technology.

SOUN’s Zacks Rank & Key Picks

Currently, SoundHound carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Computer and Technology sector are TaskUs, Inc. TASK, Vertiv Holdings Co VRT and Draganfly, Inc. DPRO.

TaskUs presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 13%, on average. TaskUs' stock has jumped 4.6% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TaskUs’ 2025 sales and earnings per share (EPS) indicates growth of 17.8% and 16.3%, respectively, from the year-ago period’s levels.

Vertiv flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 10.7%, on average. Vertiv's stock has risen 25.5% year to date.

The Zacks Consensus Estimate for Vertiv’s 2025 sales and EPS indicates growth of 24.5% and 34%, respectively, from the prior-year levels.

Draganfly has a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 2.5%, on average. Draganfly stock has gained 52.1% year to date.

The Zacks Consensus Estimate for Draganfly’s 2025 sales and EPS indicates growth of 20.1% and 52.7%, respectively, from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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