Darden Restaurants Inc


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SKU: DRI-1-1 Category:


Darden Restaurants’ stock has been hit after the rising fears associated with the fast-spreading Omicron variant. The company had a fantastic last quarter when sales trends were strong across all of its brands. They also accomplished excellent profitable sales growth despite a challenging inflationary environment. However, cost pressures on commodities and labour have continued to be beyond management expectations with inflation beyond 6% hitting the margins. Darden’s management implemented several mitigating efforts to maintain the strength of their business model but the new headwinds from Omicron are bound to negatively impact the business along with the commodities inflation. The company’s biggest advantage lies in the fact that it has embraced data-centric decision-making and constantly looks to provide a differentiated dining experience. This, coupled with their increased digitization should help them sail through the turbulent business environment. Given the current uncertainty, we give their stock a ‘Hold’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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