#5 - Darden Restaurants (NYSE:DRI)
In 2022, the mantra for investors is that quality matters when looking at stocks. And that advice is particularly true if you’re considering investing in the restaurant sector. This sector was devastated by the pandemic. And even well-established chains are struggling to recover to pre-pandemic levels amidst rising food costs and labor shortages.
However, it appears that Darden Restaurants (NYSE:DRI) has done exactly that. The Orlando-based company owns and operates a portfolio of over 1,800 restaurants, including the Olive Garden, LongHorn Steakhouse, and Capital Grille brand names.
Both revenue and profits are trending above 2019 levels. And over the next five years, revenue growth is expected to be in the low single digits, while analysts are projecting high single-digit growth in profits.
That kind of growth supports the company’s P/E ratio of 16x, which is already in line with the sector average. Darden currently has a dividend yield of over 4%, with a dividend payout of $4.64 per share on an annualized basis.
About Darden Restaurants
Darden Restaurants, Inc, together with its subsidiaries, owns and operates full-service restaurants in the United States and Canada. It operates under Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood, and Capital Burger brand names.
Read More - Current Price
- $187.59
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 16 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $186.60 (0.5% Downside)
