Buy, Sell or Hold: Darden Restaurants (DRI-N) — Stock Predictions at Stockchase

NYSE:DRI

121.16

1.23 (1.00%) 1d

Showing 1 to 15 of 26 entries

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PAST TOP PICK

(A Top Pick Jun 23/22, Up 14.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK is progressing well. We now recommend trailing up the stop (from $98) to $117.

food services

BUY

Allan Tong’s Discover Picks Looking forward, management's forecast is positive, but realistic. Earnings are expected to be $7.40-8.00 per share compared to $7.40 in fiscal 2022 as comparable-store sales should increase by 4-6%. The company will open up to 60 new restaurants, which doubles 2021's expansion rate. Also, Darden raised its dividend by 10%. It currently pays a robust 3.67%, based on a low 59% payout ratio. Darden trades at a 17.83x PE, just slightly higher than its 17x forward PE, but far below the 31.6x industry average. Read 3 Options to Profit from Falling Crude Oil for our full analysis.

food services

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TOP PICK

Stockchase Research Editor: Michael O'Reilly The owner of such iconic brands as Red Lobster, Olive Garden and Longhorn Steakhouse. As customers return to sit down dining, earnings will look to expand quickly. Recently reported earnings beat expectations and support an impressive 32% ROE. The dividend was increased by 10%, the 3rd boost since the pandemic began. We recommend a stop loss at $98, looking to achieve $152 -- upside over 32%. Yield 3.87% (Analysts’ price target is $151.59)

food services

DON'T BUY

It has been hit by many downgrades. He expects a disappointing report next week due to food and labour inflation, plus a cash-strapped consumer. Also, they are sensitive to fuel costs.

food services

BUY

The market prefers Growth at a Reasonable Price (GARP) stock as rates rise and tech is unfashionable. The PEG ratio is a key metric. These shares pay big dividends or buyback shares. Their latest quarter disappointed, taking a big hit from Omicron and food inflation. But the former is now behind us and food inflation could peak in the second half this year. If you buy now, you can benefit later with this stock. Trades at 17x earnings and pays a 3.5% dividend yield. A well-run restaurant chain.

food services

BUY

It reports Friday. Restos have made a big comeback. Darden has deep pockets and can stay competitive, so he expects good numbers.

food services

BUY

Up 25% this year. Buy. During the pandemic people ordered out and now people are dining in. The chart says this wants to bounce. He'd still buy this. He likes the chain and restaurants. The future looks brighter than the present.

food services

DON'T BUY

Pass. It had a huge run. It will trade down to $138 before it rises to new all-time highs.

food services

COMMENT

It reports Thursday. He wants to hear them talk about the latest outbreak and expects them to say things are better, though not perfect. Olive Garden is their franchise.

food services

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TOP PICK

The company is taking more market share compared to competitors. People will go to restaurants with the economy reopening. With the pandemic shuttering many smaller players, the big players should dominate. Social media mentions have increased by 20% in the last 24 hours.

food services

BUY

It's taken more market share during Covid and is pulling away from the pack. The CEO said that the first thing people do when they get vaccinations is to go to a restaurant. The pandemic has lasted just long enough to wipe out the little guys and left the bigger players to dominate.

food services

BUY

It reports Thursday. It's had a good run and he expects good numbers, given the scarcity value of this stock and the Last Man Standing thesis during the upheaval that all restos have faced during Covid.

food services

COMMENT

Trade this medium-term as a reopening play, but after that is downside: food and labour costs will rise and there will be a labour shortage. As the economy reopens, people will dine-in and not take-out as they did during Covid.

food services

BUY

Last summer, Bogota Chow steakhouse sold 1,300 steaks a week way past their normal 500 after the first stimulus cheques were issued. Darden controls costs well and have a good, diverse range of brands. The valuation makes sense.

food services

COMMENT

New York will soon ban indoor dining and he expects the rest of the country to follow, which will impact Darden. But long term it will survive. He expects good guidance when they report next week, but the stock has run up lately.

food services

Showing 1 to 15 of 26 entries

Darden Restaurants(DRI-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 7

Stockchase rating for Darden Restaurants is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Darden Restaurants(DRI-N) Frequently Asked Questions

What is Darden Restaurants stock symbol?

Darden Restaurants is a American stock, trading under the symbol DRI-N on the New York Stock Exchange (DRI). It is usually referred to as NYSE:DRI or DRI-N

Is Darden Restaurants a buy or a sell?

In the last year, 7 stock analysts published opinions about DRI-N. 5 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Darden Restaurants.

Is Darden Restaurants a good investment or a top pick?

Darden Restaurants was recommended as a Top Pick by on . Read the latest stock experts ratings for Darden Restaurants.

Why is Darden Restaurants stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Darden Restaurants worth watching?

7 stock analysts on Stockchase covered Darden Restaurants In the last year. It is a trending stock that is worth watching.

What is Darden Restaurants stock price?

On 2022-09-26, Darden Restaurants (DRI-N) stock closed at a price of $121.16.

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