DRI Is A Sell
Darden Restaurants (DRI) – owner of the Olive Garden and other popular middle class chains – reports earnings Friday morning. The stock has had a great run the last six months but I think it’s time to sell. As inflation and economic weakness squeeze consumers – especially middle class ones – they are likely to eat out less. In addition DRI is a little expensive after its big run at 19x FY23 guidance of $7.40-$8.00. I’d take profits – or even short – ahead of earnings.