Darden Restaurants (DRI) Still A Buy, Even Though Consumers Aren't Eating At Restaurants Anymore

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).

See Also:
Sorry Whole Foods (WFMI), Worst Yet To Come For Food Prices
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)


NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In