Entering text into the input field will update the search result below

Darden: Limited Margin Of Safety At Current Levels

Oct. 04, 2021 12:35 PM ETDarden Restaurants, Inc. (DRI) Stock
Taylor Dart profile picture
Taylor Dart


  • Darden released its fiscal Q1 2022 results last month, reporting 51% revenue growth year-over-year and significant EBITDA margin expansion with strong sales in nearly every segment.
  • This was driven by high double-digit same-store sales growth and the addition of 34 net new stores in the period.
  • While this has set up Darden for robust earnings growth, I don't see much of a margin of safety here, with Darden trading at 20.5x FY2022 estimates.
  • So, while I continue to see Darden as one of the top buy-the-dip candidates in the sector, I believe it makes sense to wait for a dip below $130.00 before starting new positions.
Main facade of Olive Garden restaurant in Buford, Georgia

Erik Gonzalez Garcia/iStock Editorial via Getty Images

It's been a solid year thus far for the restaurant sector, and Darden (NYSE:DRI) continues to outperform its peers, up ~31% year-to-date, lapping a 9% return in a difficult year for the industry. The continued outperformance can be attributed to the company's exceptional operating results, with

This article was written by

Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough You can access more in-depth research, my current portfolios, my top-12 miner rankings, GDX buy/sell signals, new positions I am entering/exiting, plus proprietary sentiment indicators updated weekly for gold miners in my newsletter below. Returns Link: https://imgur.com/a/sreY6SzSubscription LinksMonthly: https://buy.stripe.com/7sI14d4b92vFdUc15cAnnual: https://buy.stripe.com/4gw28h0YXeen7vObJP - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NEM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You


Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About DRI

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on DRI

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.