Is Darden Restaurants, Inc. (DRI) Destined for Greatness?

Page 2 of 2

Management also plans to reduce capital expenditures in fiscal year 2014 by 10%, to $675 million. Location remodeling in the Olive Garden brand will slow, but 15 new locations are still planned for the fiscal year. Darden Restaurants, Inc. (NYSE:DRI) has huge cash flow potential from its Specialty Restaurant Group, including Yard House, which is expected to push group sales over the $1 billion mark. This segment has plans to add 150-170 restaurants over the next four to five years. However, if the company neglects the appearance of its flagship brands, that may not offset a diner exodus. No one wants to eat Italian in a dump.

Putting the pieces together
Today, Darden Restaurants, Inc. (NYSE:DRI) has few of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Darden Destined for Greatness? originally appeared on Fool.com.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Chipotle Mexican Grill (NYSE:CMG). It also owns shares of Darden Restaurants.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Page 2 of 2