Consensus is that Americans can’t afford to eat out anymore. Oppenheimer thinks those concerns are overblown. America WILL eat out at Red Lobster and Olive Garden, Oppenheimer says, along with other chains owned by Darden (DRI):
- stock is cheap
- commodity cost concerns are overblown
- government tax rebate checks will give the restaurant stocks a boost
Darden may be a cheap stock, but tax rebate catalyst seems late. Haven’t investors already incorporated that boost?
Oppenheimer maintains OUTPERFORM on Darden Restaurants (DRI).
Sorry Whole Foods (WFMI), Worst Yet To Come For Food Prices (WFMI, WMT)
Sorry, Gas and Food Inflation Has Already Eaten Your Rebate Check
Eat-At-Home-To-Save-Money Trend Great News For Heinz (HNZ), General Mills (GIS), and ConAgra (CAG)