DRI - Darden's Earnings Preview: Comparing LongHorn Steakhouse Vs. Texas Roadhouse

2024-06-14 11:41:16 ET

Summary

• Darden Restaurants has proven a reliable long-term stock, delivering a 10% annual shareholder return over any 10-year period since its spin-off.
• Recent trends show a slowdown, making the stock underperform the market.
• At the same time, Darden is able to perform better than the industry average, without, however, beating some close competitors.
• We get ready to read Darden's upcoming earnings report, with a focus on the competition between Darden's LongHorn Steakhouse and Texas Roadhouse.

Darden Restaurants, Inc. ( DRI ) has been able to generate a total shareholder return of over 10% annually on any 10 years since its spin-off from General Mills 29 years ago . As a result, it returned 363% vs. the 176% the S&P500 ( SPY ) achieved.

However, in the past 5 years, DRI shares' return has only been 42% versus the S&P500 returning 88%. Even worse, in the past year, we have the index returning over 24% while Darden's stock is down 8%....

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