Cramer Calls Darden a Retail Winner as Olive Garden Numbers Impress
The endorsement underscores momentum at Olive Garden despite elevated beef costs pressuring margins.
Overview
- Jim Cramer highlighted Darden as a retail winner and said Olive Garden's numbers look great, with the stock described as vaulting nearly 2% during the session he referenced.
- Darden reported fiscal Q2 revenue of $3.1 billion, topping estimates around $3.07 billion, while adjusted EPS of $2.08 came in slightly below the $2.10 consensus.
- Management said high beef prices have been weighing on margins, and Cramer pointed to menu items such as chicken and salads as contributors to recent performance.
- Post-earnings, BTIG reiterated a Buy rating with a $225 price target, while Stephens kept an Equal Weight rating and trimmed its target to $205, citing softer Olive Garden trends and stable LongHorn comps.
- LRT Capital praised Darden's unmatched scale and described Olive Garden as a cornerstone of the portfolio, emphasizing advantages in supply chain and operations.