Darden Restaurants: A Stock on the Move with a Strong Partnership and Earnings Growth

As I always say, “The trend is your friend,” but it’s essential to understand what drives that trend. In this case, DRI (Darden Restaurants) has been making headlines lately due to its partnership with Uber Technologies, expanding their on-demand delivery service across more of their brands.

Yesterday was a big day for the company as they announced another successful pilot program at Cheddar’s Scratch Kitchen, following in the footsteps of Olive Garden. This expansion is expected to drive sales and growth for DRI, which has already shown impressive results with its existing partnership.

But what really caught my attention was the stock price movement. With a 5.37% gain today alone, it’s clear that investors are excited about this development. Let’s take a closer look at some key metrics from Finviz to understand why:

  • Market Cap: $23.22B
  • P/E Ratio: 21.58 (compared to the industry average of around 20)
  • EPS next Y: 12.76% growth expected for the coming year, which is higher than many other restaurant stocks in its peer group.
  • Insider Trading Volume has been increasing over the past few months, with a significant number of shares being exercised or sold by company insiders.

Now, I’m not here to make any buy or sell recommendations. My goal is to provide you with information and insights that can help inform your investment decisions. However, it’s essential to note that DRI has shown consistent earnings growth over the past few years, with a 5.14% sales Y/Y TTM.

The partnership between Uber and Darden Restaurants could be a game-changer for this company. With more brands on board, they’re expanding their reach and increasing revenue potential. This is especially true given that same-restaurant sales at Olive Garden have been impressive lately.

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Author:

Jeff Bishop

One of the best traders anywhere, over the past 20 years Jeff’s made multi-millions trading stocks, ETFs, and options. He is renowned as an incredible trader with a deep insight and a sensitive pulse on the markets and the economy. Jeff Bishop is CEO and Co-Founder of RagingBull.com.

Even greater than his prowess as a trader is his skill and passion in teaching others how to trade and rake in profits while managing risk.

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