Some Restaurant Chains Prosper With Customers Despite The Economy
Sure the economy has been tough on all businesses - especially restaurants. But, financial analysts on Wall Street have taken note of some of the more resilient restaurant chains - going so far as to say that they would make good stock picks.
Orlando, Florida-based Darden Restaurants has recently been lauded by Goldman Sachs for their ability to continue to draw customers even in tough economic times.
Michael Kelter, an analyst for Goldman Sachs says the following about Darden's brands:
We view Darden as the highest quality casual dining stock by a relatively wide margin. (1) DRI owns three of the four highest scoring brands in our restaurant survey, (2) There is future growth potential from LongHorn and the concepts being incubated within its Specialty Restaurant Group, (3) Profitability is exceptionally strong, (4) FCF is staple-like in its consistency, and (5) DRI is shareholder friendly with respect to its cash deployment. We expect double-digit EPS growth for each of the next several years.”
Darden Restaurants owns and operates six chains throughout the country: Olive Garden, Red Lobster, Longhorn Steakhouse, The Capital Grille, Bahama Breeze, and Seasons 52.