DRI - Darden Restaurants: Staying On The Sidelines Until More Positive SSS Performance
2024-04-21 00:22:56 ET
Summary
- Darden Restaurants is recommended as a hold due to a poor sales outlook and margin compression.
- DRI's sales have declined, particularly in traffic, and its performance is weaker compared to Texas Roadhouse.
- Margins are expected to compress as DRI underprices inflation and faces rising costs, potentially leading to further downside risk.