Darden Restaurants, Inc. (DRI) – Bear of the Day

Darden Restaurants, Inc. (DRI) boasts a unique position driven by its strong value proposition, menu improvements, excellent unit-level execution with differentiated brands and a balanced portfolio, which provides stronger diversification in sales and cost synergies. Favorable food and energy costs will also support Darden in 2013.

However, the company is not altogether immune to the challenges. The recent woes at one of its core brands, Olive Garden, continue to nag the company. Stiff competition resulting in higher discounting rates, failure of some promotional offers, probability of higher 2013 SG&A expenses as well as cautious consumer spending will add further woes to the worry.

Most importantly, Darden recently slashed its earnings per share guidance for 2013 to reflect the dilutive effect of the latest Yard House acquisition. Hence, we downgrade the stock from a Neutral to Underperform recommendation.
 
DARDEN RESTRNT (DRI): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Comments

• Enhanced Categores

  • Analyst Opinions (45298)
  • ETF Picks (257)
  • Mergers and Acquisitions (4358)
  • Stock Picks (921)
  • Stocks to Sell (874)
  • Uncategorized (68)

• Archives

  • May 2013
  • April 2013
  • March 2013
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008

• Meta

  • Log in
  • Entries RSS
  • Comments RSS
  • WordPress.org

• Pages

  • About Us
  • Contact Us

• 
  

• About

  StockPickBloggers.com brings you the hottest stock picks from the investment community.

• Blogroll

  • Hot Stock Picks - Hot stock picks from the stock market neural network scan of Stocknod.com. Get today’s best stock picks from the leader in stock picks analysis.
  • Investools
  • Motley Fool
  • Seeking Alpha