Darden Restaurants, Inc. (DRI)
by Zacks Equity ResearchJuly 26, 2012 | Comments : 0 Recommended this article: (0)
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However, the company is not altogether immune to the challenges. The recent woes at one of its core brands, Olive Garden, continue to nag the company. Stiff competition resulting in higher discounting rates, failure of some promotional offers, probability of higher 2013 SG&A expenses as well as cautious consumer spending will add further woes to the worry.
Most importantly, Darden recently slashed its earnings per share guidance for 2013 to reflect the dilutive effect of the latest Yard House acquisition. Hence, we downgrade the stock from a Neutral to Underperform recommendation.
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