Darden Restaurants (NYSE:DRI): With Phase 1 opening procedures in place, the restaurant industry is close to leaving the horror of being totally shut down except for carryout and delivery, everywhere but California that is where Monday the Governor shut the industry down again hammering Darden stock.
Darden Restaurants Inc. owns and operates full-service restaurants in the United States and Canada.
As of 24 November 2019, the company owned and operated approximately 1,799 restaurants, which included 867 under the Olive Garden, 518 under the LongHorn Steakhouse, 166 under the Cheddar’s Scratch Kitchen, 79 under the Yard House, 59 under The Capital Grille, 45 under the Seasons 52, 42 under the Bahama Breeze and 23 under the Eddie V’s Prime Seafood brands.
The company reinforced the balance sheet in May: Darden completed a $460-M equity raise ($400-M common, $60-M green shoe) to strengthen its balance sheet. The raise highlights Darden’s growing cost of capital advantage to peers given years of a more conservatively run balance sheet. Despite the 6% dilution, so Darden’s war chest will help it muscle out peers post-C-19 Coronavirus chaos.
The company has suspended its dividend for now. I have a 120 price target, which is way above the 85.78 consensus target. Darden’s last trade Monday was 72.09 Vs its 52 wk trading range of 26.15-128.41
DRI broke out on 12 June at 75.94 and met some headwinds and pulled back, a strong close over the Key resistance at 73.74, opens the Bull path again as there is little resistance above that mark, the stock is extremely oversold in here.
Technically we are Neutral with a Bullish bias in here.
News: Darden Gets Upgrade as JPMorgan Applauds Big Changes Amid C-19 Coronavirus
Have a healthy day, Keep the Faith!
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