Stockchase Opinions

Jim Cramer - Mad Money Darden Restaurants DRI-N COMMENT Dec 13, 2024

It reports Thursday. Olive Garden still drives this company, but the street is focused on the Texas Roadhouse and Brinker chains. Are consumers pushing against high prices?

$166.690

Stock price when the opinion was issued

food services
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PAST TOP PICK
(A Top Pick Jun 23/22, Up 44.7%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with DRI is progressing well.  We now recommend to trail up the stop (from $135) to $158. 

BUY

Up 240% over 9 years since Starboard took over, 354% is you reinvested the hefty dividend, nearly double the S&P's performance.

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Jun 23/22, Up 38.3%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with DRI has triggered its stop at $158.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous recommendation to cover half of the position, this will result in a net investment gain of 35%.  

COMMENT

They report Thursday and will reveal if people will still spend a lot of money to dine out. He likes DRI but not enough to buy it.

WATCH

They report Friday. Listen to what they say about consumer demand and inflation. This is key and could pressure shares.

BUY

Trades at 18x PE and pays a 3% dividend yield. True, it's in a crowded space, but DRI makes money.

WATCH
reports Thursday

Expectations are high, so they need to come in with a strong quarter. The consumer is resilient and business is doing well.

DON'T BUY

They report Thursday. Analysts have been downgrading it and shares are down from their peak. It can go lower if they report their price hikes are hurting business.

DON'T BUY

They report Thursday. A lot will depend on their Olive Garden business, their largest, and it could surprise, but he much prefers Sweet Green and Cava.